After publishing my last blog I was alarmed to read in the Guardian that German energy companies RWE and E.ON have decided not to go ahead with the planned construction of two new UK nuclear power stations.
The article cites the current economic climate combined with Fukushima’s nuclear disaster last year as the likely reasons behind the energy giants’ decision to shelve the plans.
The events at Fukushima were certainly a factor in the German government’s decision to phase out nuclear power but it strikes me that there is more to the story in the UK than that.
Perhaps these things did have some bearing on RWE and E.ON’s sudden hesitancy but the cynic in me suspects a rather different rationale is at work here. Personally, I think a very clever tactical game is in play.
RWE and E.ON’s move can’t be blamed on a bad economy when they have just posted record profits.
Nor do I really believe that they have been scared off by the prospect of a Fukushima style disaster, the UK isn’t exactly a seismic activity hotspot.
It seems more likely that they are making a show of backing out in a bid to force the government into a corner.
They’re well aware that the UK desperately needs these power stations and what better way to sweeten the deal for themselves than by using this bolshy move to push the government into offering increased subsidies and tax breaks as incentives for them to go ahead with the planned construction?
These power stations will no doubt be built but thanks to the bold manoeuvres of the German energy companies they are now likely to cost the taxpayer significantly more.
James Villarreal