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New nuclear should be in CfD auctions, says Centre Forum

New nuclear power stations should be included in the contract-for-difference (CfD) reverse auctions, according to a leading think tank.

A report by Centre Forum stated that new nuclear is a “mature technology” and therefore should be included in the CfD reverse auction.

It is claimed this would have help would “ensure value for money” for UK electricity customers.

The report also added that this would have helped to increase competition for the development of the technology which would have made it easier to show the strike price, of £92.50/MWh, represented value for money.

Centre Forum also stated that government procurement and operation of a new nuclear plant, via an arms-length organisation, could have saved £12.4 billion over the 35 years, either by developing the project itself, or by providing competition to the EDF proposition.

Toby Fenwick, a research associate at Centre Forum and author of the report, said: “Operating as a Network Rail-style arms-length organisation, a public operator is best placed to provide the competition required to get the best price for the low carbon nuclear power we need.”