Nuclear builders 'must pay for clean-up'

Business secretary John Hutton has said that companies building the next generation of nuclear power stations will have to pay the full cost of future closure and clean up.

The government has set out the draft framework for how the decommissioning of new nuclear reactors would be paid for.

Details were made available following the publication of the white paper paving the way for future nuclear energy production.

But companies interested in building the new reactors have called for more clarity on responsibilities and liabilities, particularly in relation to decommissioning costs.

Hutton said that taxpayers should not be forced to pay for clean-ups having paid substantial amounts to the companies for building and running the power stations.

The cost of dealing with the UK's existing nuclear programme now stands at £73bn.

Hutton said that the guidance made it clear that "companies are liable by law to meet their full costs".

He said that "funds will be sufficient, secure and independent, it will be a criminal offence not to comply with the approved arrangements and we are taking powers to guard against unforeseen shortfalls".

Under the new guidance, companies must produce a detailed "funded decommissioning programme" before they get approval to build nuclear reactors.

This will include a commitment to pay into a secure and independently managed fund to cover all the costs of closing down the power stations, as well as the cost of disposing of the nuclear waste.