Contributions
472 recent contributions in Hansard
HANSARDNuclear Energy (Financing) Bill (First sitting)Q David, do you have any thoughts on the designation? David Powell: I agree with Julia: clearly, that is a decision for the Government. As Mike said before, it is quite important…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (First sitting)Q My last question is this: obviously, one of the purposes of the regulated asset base is to open up investment opportunities for UK pension funds and so on to invest in nuclear,…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (First sitting)I know, but you have relations with the investors and you know what they are looking for. Michael Waite: Indeed. Julia Pyke: And it is my job to raise the money. Michael Waite:…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (First sitting)Q But are you looking for particular things about the RAB model that will help your conversations with investors while providing value for consumers? Julia Pyke: A consumer prices…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (First sitting)Q I agree with the levelling-up point, although that is more a political thing rather than—16 Nov 2021HANSARDNuclear Energy (Financing) Bill (First sitting)I do not know whether the microphone is working. I agree with the levelling-up point, although that is more a political thing rather than, presumably, one of the criteria that the…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (First sitting)That is the whole purpose of the RAB model. That is all my questions. Thank you.16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Q Yes, thank you, Chair. I just want to clarify something. Mr Woods, did I hear you correctly when you said you could finance your smaller reactors from contracts for difference…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Q Do you not have the construction risk that others have? Alan Woods: We have removed a lot of the construction risk. We have what is called our fourth factory, so we actually…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Q Is that irrespective of whether you have the CfD model or the RAB model? Alan Woods: I am referring there to the CfD model. If we have the CfD, which is essentially providing…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Q That is very interesting context. To come back to my question, will the RAB model be enough to attract sufficient capital, particularly from UK investors, to fund the building…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Q From what you are saying, if you had the option between CfD and RAB, it sounds as if you would choose CfD? Alan Woods: Well, look, if RAB is available then RAB is great. If you…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Q If you moved ahead with the CfD approach, would you be able to switch to the other approach when it is legislated for? Alan Woods: Yes, sure. There is nothing stopping you.16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Change horses. Alan Woods: Yes, it is no secret that SMRs work by building a fleet. How you finance each SMR does not mean they all have to be financed the same way. We are also…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Q I am interested in similar questions to the others. Chris, do you think the RAB model will be sufficient to encourage enough private capital to build a new generation of nuclear…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Q Dawn, do you think the RAB model is sufficient to encourage the investment into the nuclear industry that we need to build the capacity to get to net zero? Dawn James: I hope…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Q Cameron, the same question. Do you think the RAB model will be sufficient to attract enough capital to build the nuclear power stations we need? Cameron Gilmour: Looking at some…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Q Do you have any particular view about the role of Ofgem as set out in this Bill? Does Ofgem have the capability to regulate a RAB model in nuclear power? Obviously it is whole…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)I can ask Chris first if you want. Chris Ball: No, that’s fine. [ Laughter . ] Alan Woods: Look, clearly there needs to be a regulator, and a regulator is needed to regulate the…16 Nov 2021HANSARDNuclear Energy (Financing) Bill (Second sitting)Q Would that not be the role of Government—of BEIS? Chris Ball: It may well be within Government and BEIS, absolutely. But I think we do need that capability firmly established in…16 Nov 2021