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Liberal Democrat cares leaked document reveals plans to subsidize nuclear via electricity bills

Ministers

considering subsidizing nuclear energy via electricity bills -. Despite his promises to do so, a secret document seen by The Guardian revealed

The leaked document clearly spells out the plans use "contracts for difference" of nuclear energy, which allows operators to obtain nuclear energy prices higher than fossil fuel plants .

provides further inflame the ranks on energy policy and cause a political storm for the Liberal Democrats, who fought general election strongly opposes an expansion of nuclear energy.

Fiona Hall, Liberal Democrat leader group in the European Parliament with a special interest in energy, said he had no doubt now that the contract for the difference was a grant. "The industry on all sides that it is a subsidy." She wants the court of the United Kingdom of Auditors and the European Commission to give a legal opinion on the issue and believes that any subsidy is against the coalition agreement. In a blog posted on the website of Voice Liberal Democrat calling party members to "speak" against nuclear subsidies.

The question is the key Lib Dem many supporters and has gained even more resonance to the catastrophe of Fukushima and the withdrawal of nuclear countries such as Germany and Italy.

green campaigners believe that the Liberal Democrats were persuaded to allow the higher energy bills to circulate in greater profits to nuclear operators by a snap that allows ministers to hide Grant support for the nuclear "low-carbon energy."

The Guardian also saw the presentation by Scottish & Southern Energy to members last month, saying the plans are "hidden subsidies" will be challenged for legal reasons, and could "damage" Financing renewable energy. Hall said: "I have not seen the ESS presentation, but even the nuclear industry accepts this is a hidden subsidy."

green campaigners threaten to sue when plans are made public later this year.

The leaked document, a presentation to the European Commission, the government confirmed as authentic, said: "Our reforms put in place a regulatory framework based on feed-in tariffs for all low carbon technologies This will enable more young people to mature technologies for short and medium term future will be able to compete on the open market ... in time, we hope this framework will enable the various low-carbon technologies to compete against each other on an equal footing to its rightful role in the energy mix. "

This is the clearest evidence to date of government plans to subsidize nuclear power through the back door, by the ranking of renewable energy as "low carbon", despite the repeated assurances that there would be no public subsidy. The coalition agreement of subsidies of nuclear energy has explicitly excluded. He said: "The Liberal Democrats have long opposed any construction of new nuclear Conservatives, by contrast, have agreed to permit replacement of existing nuclear power plants, provided they are subject to normal planning process for large projects (under a new statement of national planning.), and provided they receive no public subsidy. "

Claude Turmes, a leader of the Greens in the European Parliament, told the Guardian: "We believe these rates provides nuclear energy is a state aid to nuclear energy, which would not allowed .. We are looking for that very closely and we will fight this "Decc He said:" I think it should be considered as state aid and are in discussion with the Commission on this ". In the plans of the energy industry are also controversial. The presentation of Scottish & Southern Energy Plans label firmly nuclear government as a "subsidy". In the presentation members were informed that the government was making changes in the position he needed to "hide the subsidy" to avoid scandal.

SSE noted plans must "clearly support [the rules], however, the grant for a mature technology like nuclear power is a likely stumbling block to the committee" and accused the government of trying to hide it. SSE said: "We fear that if he gets a grant of up to support renewable nuclear [be] enormous uncertainty in our core market."

A spokesman for SSE said. "We do not know what the grant is required to make investment in new nuclear work What you need the UK is an honest debate about the level of subsidy is necessary, the mechanism for their benefit, and why consumers should pay for it. If we decide that nuclear energy is necessary to grant must be clear what is paid and not be such as investment damage to essential services for renewable generation. "

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