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CAMERON ANNOUNCES PLANS FOR NUCLEAR

05/14/2012

Prime Minister David Cameron's government announced plans to make nuclear more profitable in the United Kingdom, reviving the industry months after a German utility scrapped a project because it would take too long for the investment to pay off. The proposed measures include long-term contracts that give guarantees to producers to help attract as much as $97 billion in investment. Energy Secretary Ed Davey faces criticism that energy plans are driving up bills; U.K. families are set to pay as much as $100.5 billion per year in energy costs by 2020, more than four times as much as the figure in 2000. According to Deutsche Bank, families will spend more than $2,400 a year by the end of the decade. Britain currently gets about 20 percent of its power from ten nuclear stations, and will require new stations in the coming years. All the nation's coal-fired power plants are set to close by 2016, and currently open nuclear plants are all set to shut by 2035. "We’re not in danger of capacity shortages in the next two to three years," said Conservative lawmaker Tim Yeo. "The problem comes in the 20-teens if we haven’t started building." For the full story, see http://www.bloomberg.com/news/2012-05-09/nuclear-revival-in-u-k-planned-as-cameron-spurs-profits.html.