Firms halt nuclear plant plans

Not only is new nuclear build stalling, but investment is stalling generally across the energy industry.

Large amounts of capital require large amounts of cash and the recession, especially in Europe, is making access to cash difficult.

This decision will bring home to government how challenging it is when investment decisions are left entirely to the market.

We are now in a position where investment by UK utilities in the UK is being affected by decisions taken overseas.

Nuclear power has a vital role to play as part of a more sustainable, balanced and low-carbon future energy mix, to make us less reliant on volatile fossil fuel prices, increase our energy security, and keep prices down for families. RWE and E.ON’s decision to not proceed with the Horizon Nuclear Project is disappointing, and underscores the importance of the Government’s electricity market reform delivering a framework that will provide certainty and confidence for other potential investors.

The UK Government must not allow this crucial UK project to fail because of decisions being made in Germany. Britain needs Project Horizon to succeed for the sake of our future energy needs and thousands of skilled jobs which would be created as a result. The Government must urgently do everything possible to get Project Horizon back on track by finding buyers to take over the project.

E.ON and RWE's withdrawal is clearly very disappointing, but the partners have clearly explained that this decision was based on pressures elsewhere in their businesses and not any doubts about the role of nuclear in UK's energy future.

The UK's new nuclear programme is far more than one consortia and there remains considerable interest.