Horizon Nuclear Power

This article is part of the Nuclear Spin project of Spinwatch.

Background

Horizon is a UK energy company formed in January 2009 by the German-owned E.ON UK and RWE npower in a joint venture to develop new nuclear power stations in the UK. Both E.ON and RWE already jointly owned three nuclear power stations in Germany, with stakes in 17 others worldwide.

Owners pull out of UK nuclear industry

In March 2012, however, the two companies announced their intention to withdraw from UK nuclear and seek new owners for Horizon. Both companies blamed this withdrawal on a lack of cash, partly resulting from recent lower profit margins in gas- and coal-powered electricity generation, along with the damage caused by the German government's decision to desert nuclear power in the wake of the Fukushima disaster.

In May 2012 MPs on the UK Commons select committee for energy and climate change were told by Volker Beckers, chief executive at RWE that persisting with Horizon was not an option, adding that "It would have meant a [credit] downgrading, and we could not afford to do that." The company had already suffered one downgrade and was reducing its capital requirements in response.

"Our decision was down to the financial firepower of the company," said Tony Cocker, chief executive of E.ON UK. "Nuclear is an extremely long-term investment."

Government and nuclear firms work together to soften the bad news

In July it emerged that government officials had worked closely with E.ON and RWE to soften the impact of their major blow to the UK government's nuclear build plans. This, said the Guardian newspaper, was 'further evidence of how Westminster has collaborated with the industry to try and protect nuclear power from bad news, first exposed by the Guardian in the aftermath of the Fukushima accident in Japan last year'. It revealed that:

Two days before the announcement, Hergen Haye, head of new nuclear at the Department of Energy and Climate Change (Decc), wrote to E.ON and RWE. He asked if he could be informed when the companies had told Carwyn Jones, Labour's first minister for Wales, of their decision. Haye told the companies that this was "in order for us to share our press lines to co-ordinate a united message". The companies' proposed press statements looked "broadly fine", he said, but promised to forward "any detailed comments". He asked about "engagement plans and timing" for telling local authorities. "Also we have been thinking about some difficult/defensive line issues and would be grateful for sight of what you may say," he said.

He wanted to know how the companies would respond to journalists questioning whether the UK government could have done something differently to prevent the pull out. "Do you think it is possible for new nuclear to be built in the UK?" Haye asked. E.ON responded the next morning by saying it believed that ministers were "putting in place a framework which will make it possible for new nuclear". Its withdrawal was "not a reflection on the work done by the UK government".

At the same time, RWE gave details of when it was informing Jones, as well as Labour's shadow energy minister, Tom Greatrex, the commercial secretary to the Treasury, Lord Sassoon, and a raft of other politicians and local stakeholders. "We think it is possible for new nuclear to be built in the UK," RWE said. "As you can see from the press release, we are not making any comment on the UK policy position."

The emails, large portions of which have been censored, were released by Decc in response to a request under freedom of information legislation. One from RWE is marked "strictly private and confidential".

Current activities

From Horizon's website as of June 2012:

Horizon is proposing to build a new nuclear power station on land next to the existing Wylfa A Power Station on Anglesey. The new power station would be expected to generate around 3,300 megawatts of low carbon electricity - enough to supply around five million homes.

As part of the planning process for the project, we are seeking the views of the local community, the general public, local authorities and a range of statutory and other non-statutory bodies.

People

• Alan Raymant - Chief Operating Officer for the Horizon nuclear joint venture between E.ON and RWE.