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Budget offers £50M nuclear boost

Nuclear energy companies will make £50M a year extra for the next two decades thanks to chancellor George Osborne’s Budget, the government has said.

Ministers announced changes in a bid to cut the amount of polluting fuel used to generate electricity. They will lead to higher prices and a cash windfall for energy firms.

Treasury economic secretary Justine Greening said: “The existing nuclear sector is likely to benefit by an average of £50M per annum to 2030 due to higher wholesale electricity prices.”

She added: “The carbon price floor is intended to create economic incentives toward low-carbon electricity generation and away from high-carbon generation.

“All types of low-carbon technologies will be incentivised by the price floor.

“The impact on utility companies’ profitability will depend on the overall composition of their generation portfolios and future investment decisions.”

She said renewable energy firms would be up at least £25M a year better off.

Greening was answering a written parliamentary question from Lib Dem Martin Horwood (Cheltenham).

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