If private insurers refuse to cover nuclear reactors the financial risks will be shifted onto Australian taxpayers, meaning we are still unclear how much taxpayers will have to cover of the nuclear bill.
Australians for Affordable Energy has expressed deep concern over the revelation the private sector may not be able to insure nuclear reactors, following comments on Monday from the CEO of the Insurance Council of Australia.
Many of Australia’s leading insurance companies won’t cover damage from a nuclear disaster, leaving the government as the insurer. By shifting the financial burden of insuring nuclear facilities onto taxpayers, Australians could be exposed to potentially tens of billions of dollars in liabilities if a nuclear accident were to occur.
“We know that private investors won't put money into building the industry, that we will need to create a massive new government agency to oversee it, and now we are hearing that we will need to pay for the insurance too? What’s next?"
"Advocates for nuclear energy need to say whether it can stand on its own, including paying their insurance. And they need to tell us what other costs we might be asked to carry. The fact is by the time the reactors are done it won't be us paying the bills for the insurance, it’ll be our grandkids. I’d like to know what we’re signing them up for. ”
Australians for Affordable Energy spokesperson Jo Dodds, a bushfire survivor and advocate for evidence-based policy, said: "Australians are already struggling with rising energy costs, the last thing we need is a power source that could further inflate our electricity bills and our taxes.
“The high costs associated with uninsured nuclear power could be passed onto consumers, who are already looking at paying higher bills if we were to shift to nuclear power. This is money hardworking Australians simply can’t afford to pay.”
AFAE is warning against locking into costly or uncertain energy options and is calling for greater transparency on the long-term costs of competing energy plans.
Contact details:
Jo Dodds: +61 428 399 871, jo@afae.net.au