Energy Bill

With respect, may I make a little more progress? The fixed unit price and risk premium will provide new-build operators with clarity on the maximum amount they would be expected to pay the Government. That cost certainty will enable them to make investment decisions and seek financing for new-build. Should the actual costs of providing the waste disposal service prove lower than expected, those lower cost savings would not be passed on to nuclear operators. Instead, they would accrue to the Government because companies would have forgone any advantage in the form of lower costs in return for certainty in the price of waste disposal. Because the Government have taken on the risk, it is only right that they keep any upside that accrues. In light of the debate in Committee on the fixed price for waste and the request for greater transparency, we decided to draft the new clause to set out clearly the Government's policy intentions on the issue. In essence, the new clause translates our existing stated policy on waste disposal set out in the nuclear White Paper and in the draft guidance on nuclear decommissioning programmes into the Bill. I am now happy to give way to my right hon. Friend.