From Jon Gibbins
There has been concern because a reference to liability insurance as part of the external costs of nuclear power appears to have been removed from the final version of the British government’s draft energy review, apparently because of “the difficulty of quantifying the possible costs of accidents” (16 March, p 57, and 6 April, p 50). But if British Nuclear Insurers is prepared to use its unique experience for the public interest by estimating monetary values for environmental risks for new nuclear plants, then there is a good chance of overcoming these difficulties.
I suggest a challenge for BNI. Estimate the possible range of premiums required to provide a selection of realistic limits for nuclear liability insurance for new plants: say £5 billion, £10 billion, £20 billion, £50 billion and £100 billion. State the difficulties involved in making the estimates. Then collaborate with manufacturers in assessing how insurance costs could be reduced by better plant design.
Nuclear power, like all other existing generation technologies, only has a sustainable future if it can face up to its true external costs and then adapt to reduce them to levels which reflect the value of the power it generates.
Imperial College, London
