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EU nuclear waste funding: new Commission report "contemptible"

(Brussels, 26 October 2004) The European Commission is committing "a serious dereliction of its duties", Friends of the Earth Europe said today, in response to a new yet measly 11-page report (1) on the huge nuclear clean-up costs of 14 EU member states.

The environmental group says the Commission is shielding nuclear firms from market discipline by its ongoing failure to uphold EC treaty rules on fair competition and the control of subsidies.

In particular, the Commission's report: fails to contain full coverage on all types of nuclear liability; it fails to assess the overall adequacy of funds; and it fails to contain proposals for binding legislation.

Friends of the Earth is calling for new internal market laws that would stop the 'nuclear cheats' and ensure that adequate finance for 'reactor pension funds' is put in place. Such funding must not rely on public subsidy but is instead included within the price for nuclear electricity.

Friends of the Earth Europe campaigner Mark Johnston said:

"This report is contemptible. It reveals a serious dereliction of duty by the Commission and allows gross distortions in energy markets to continue. Despite clear treaty obligations to promote fair competition and to restrict state aids, the Commission has let the nuclear industry off the hook."

Notes:

1. Communication on the use of financial resources earmarked for the decommissioning of nuclear power plants. (European Commission, COM 04/719, adopted 26 October 2004).

2. Nuclear liabilities are the costs of decommissioning nuclear reactors and managing radioactive waste after a power plant has stopped generating electricity. These activities, which typically extended over a period of up to 100 years or more, should be funded by cash reserves built-up from income during the operating life of the plant.

However, circumstances vary widely across Europe, leading to distortions in competition and an increasing amount of state subsidies to the nuclear sector when firms get into difficulty. The recent case of British Energy plc, which has been awarded Euro 6 billion over the next 100 years is one such example. Such market abuse is to the disadvantage of alternative energy options, such as renewables and energy efficiency.

Currently there are 140 nuclear reactors operating at 64 locations in 13 states by around 18 companies. Total combined long-term liabilities amount to many hundreds of billions of euro. Under the EC treaty, the European Commission has a duty to keep state aid, which includes state guarantees, under 'constant surveillance'

 

Friends of the Earth Europe campaigns for sustainable and fair societies and for the protection of the environment,
unites more than 30 national organisations with thousands of local groups
and is part of the world's largest grassroots environmental network, Friends of the Earth International.