Nuclear power in the UK electricity market

Nuclear Electric was formed in the public sector to operate only nuclear power plant, and the Company has been foremost in developing the UK's capability for PWR design and construction. It is now obliged to compete on equal terms with privately-owned generators, and we have made it clear that we would invest in further nuclear plant only if the terms were commercially attractive to the company. The competitive environment in which we now operate has led us to recognise that the priority for the Company in the Nuclear Review is to seek the commercial flexibility which accompanies privatisation. Accordingly, our evidence to the Government in the Nuclear Review has shown that the problems of confidence which surroundet nuclear power in 1989 have been substantially resolved. The improved accounting costs and low avoidable costs of the existing stations make the commercial case for their continued operation. The completion of Sizewell B has not only given us a first class new, profitable power plant, but given confidence in the costs and performance of any follow-on PWRs. In the longer term, a greater recognition of the external environmental costs of fossil-fuel generation may swing the market in favour of nuclear power construction.