Building new nuclear power stations might result in further increases in energy bills in the short-term.
In an interview with the BBC, asked whether people would expect a small levy to be added to their bills in the short-term, the Business Secretary said: “It might have a small effect, but we are talking about, if you look at the hydrogen levy, we are talking about £30, on a bill every year.”
Earlier today, the government unveiled a £120 million fund designed to unlock new nuclear technologies and bring more investment into the industry.
On the question of whether he expected a similar levy of £30 for nuclear, he replied: “Well, let’s see what schemes come up. I mean I don’t know, we’ve got this, Future Nuclear Enabling Fund which is £120 million and that’s to attract billions of capital into this country.
“But I can’t tell you exactly at what point those investments will be made.”
In its Energy Security Strategy, the government states that it aims to deliver up to 24GW of nuclear power by 2050, a new nuclear power station every year as the Prime Minister explained last week.
Mr Kwarteng added: “Any British Energy Minister has to look at domestic security and that’s what nuclear is about and also sustainability and there’s no doubt in the medium-term that will give us cheaper power.
“We could be in a world in five years where oil price or the gas price is much higher than it is, it could be much lower, I can’t predict that. But what I can say, is that nuclear power gives us a firm, decarbonised, continuous electricity grown here, or sourced here in the UK.”