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Energy Bill

There will be a fixed price, which, as I have indicated, will probably not be the same in respect of a station built in the early days as that for one built 10 years later because by then we will know more about the costs of the geological repository. The principle of the fixed price operates in two parts. First, for the purpose of investor confidence, a fixed price will be determined early in the life of the new nuclear reactor so that money going into the given fund will be paid from year one—a key part of the Bill. Secondly, because of the uncertainties about the costs—we appreciate the difficulties in this respect because we may be talking about waste that does not need to be disposed of for 40, 50 or more years—what we are calling a risk premium will be determined. We are adding an extra amount to the fixed price to safeguard the taxpayer.