Excerpt from a good article on Scriptonite Daily. Read the whole thing, it has a wide perspective.
It was announced this week that the government as agreed a strike price for energy produced by EDF Energy’s planned new nuclear power plants. The strike price is the price the government guarantees EDF will receive per MegaWatt/Hour of energy produced. The current market rate is£47.50. The government has promised EDF £92.80. Yes, you read that correctly – the UK government has guaranteed EDF Energy twice the market rate.
As with Fracking, the government is using recent energy price hikes by the Big 6 energy firms as a case in favour of New Nuclear – implying or explicitly stating that prices will come down. However, in agreeing this strike price the government has guaranteed that they will not. They have fixed the price for energy produced by New Nuclear at twice the market rate.
Another bad deal for the taxpayer and the consumer, brokered by a government that consistently delivers for big business.