Nuclear new-build to be financed by consumer tax

The next generation of UK nuclear power stations will be funded by a new electricity tax on consumers, according to a report in The Guardian.

The proposed levy would add £44 to a typical household's annual electricity bill of £500, according to energy consultancy EIC.

Energy suppliers like E.ON and EDF are thought to be concerned about committing to building nuclear plants because of falling energy prices.

The government believes the only way to encourage nuclear new-build is by increasing the cost of electricity generated by coal and gas through an additional carbon levy on household bills.

The Guardian says that Lord Mandelson's Office of Nuclear Development has promised energy companies building nuclear plants that the price of carbon under the EU emissions trading scheme - currently about £12 a tonne - will not be allowed to fall below £27 a tonne, and ideally £36 a tonne.