The high strike price agreed by the Government for EDF’s planned nuclear plant at Hinkley Point is “immaterial” according to the Chief Executive of UK Coal.
Kevin McCullough (pictured right) told the audience for the Building More panel at Energy Live 2013 on Thursday the deal was the right thing for the country, adding: “Frankly the price is immaterial. What’s the price of the lights going out in this country.
“We would literally have civil unrest.”
He said although there was no silver bullet for Britain’s energy crisis, new nuclear was needed as “we have an aging infrastructure” and “power plants that we are closing down at quite an alarming rate.”
Responding to Nigel Lawson’s suggestion – during in an interview with ELN – that the Energy Secretary had excessive powers to negotiate strike prices without “parliamentary scrutiny”, E.ON’s Sara Vaughan said: “If you look at the run of the mill [Contracts for Difference] …it’s quite clear what the price is going to be.”
The Director of Strategy and Regulation said everybody knows “how they’ve been made up because all of the background documentation has been published.”
She added: “This isn’t about discussions in smoke filled rooms for the majority of the industry.”