Government-commissioned report says risk-averse policies ramping up prices

A new report commissioned by the government has said the UK is most expensive place in the world to build nuclear power plants.

The Nuclear Regulatory Taskforce was asked by prime minister Keir Starmer in April “to propose radical reforms, and to treat this as a once in a generation opportunity to regulate nuclear energy in a way that promotes better delivery without compromising safety”.

The taskforce’s 162-page report said the planning system needed to be streamlined and the risks associated with nuclear energy should be brought in line with the rest of the world.

hinkley new

Source: EDF

Around 10,000 people are working on the Hinkley Point C site in Somerset

It said the UK had excessively risk-averse policies in place, including “overly conservative” rules on radiation exposure levels for workers.

A “fragmented” regulatory system has led to “conservative and costly decisions not proportionate to the actual risk being managed” the report added.

Taskforce chair John Fingleton added: ”A safe and well regulated nuclear sector is vital for the UK’s future: to lower energy prices, achieve net zero, strengthen national security, and support nature and planning. It encourages investment, builds a domestic industry, and grows exports. We cannot be an AI and technology superpower if not a leader in advanced nuclear technologies.

“Reforming the regulation of nuclear power to improve delivery is challenging, but the rewards are many times greater. I encourage you to see this as an opportunity for the UK to enact serious policy change that will result in enormous benefits for our society for decades to come.”

 

What the report said: why costs in the UK are so high

Risk aversion that arises because the system punishes failure but cannot reward success. This is worsened by inconsistent and insufficient political risk appetite.

The priority for process over outcome using complex procedures as protection. This reduces accountability, judgement, and allows poor outcomes to be excused by “excellent” process adherence.

Lack of incentives aligned with the public interest. Regulators and operators are not incentivised to maximise social benefits or minimise social costs.