UK could face energy crisis as Hitachi halts work on £20million nuclear power plant in Wales
THE UK faces energy bill hikes following Hitachi's decision to suspend work on a multi-billion pound nuclear power station.
Construction on Horizon in North Wales was supposed to be completed by mid 2020s so that it would be ready to replace one of the plants that will come offline by 2030.
The decision comes just two months after Toshiba also scrapped plans for a nuclear power station at Moorside in Cumbria.
Now, an industry expert is warning Brits may face bill hikes in the future, while union bosses say the UK is on the edge of an "energy crisis" if a solution isn't sorted soon.
Tom Greatrex, chief executive of Nuclear Industry Association, also warned that Brits will be "more exposed to higher prices" if forced to rely on gas.
He told The Sun: "By 2030, all but one nuclear power plant is due to go offline. If we don't replace them, we will become more reliant on gas where prices go up and down, depending trading in international markets.
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"It's not a case of having no electricity but we will be far more exposed to higher prices."
Justin Bowden, national officer of the GMB union, which represents 631,000 workers, said that the delays are "leaving the country at risk of power cuts" and reliant on imported electricity.
He added: "While the Government has had its head up its proverbial backside over Brexit, vital matters like guaranteeing the country's future energy supply appear to have gone by the wayside."
Meanwhile, a spokesperson for the National Grid said that there is time for the market to respond before the UK's energy supply is in any danger of running out.
The Japanese tech giant had been in talks about funding since June last year and the decision follows speculation that it was concerned with rising construction costs.
The move puts 9,000 jobs at risk, including 3,000 who already work at the plant in Wylfa on Anglesey and a further 6,000 who were due to operate it.
The company said it had made "strong progress" on the project but clashed over financing and associated commercial arrangements.
Hitachi will also suspend work on another nuclear power plant at a site in Oldbury, Gloucestershire, "until a solution can be found".
Duncan Hawthorne, chief executive of Hitachi's nuclear business, Horizon Nuclear Power, said: "I am very sorry to say that, despite the best efforts of everyone involved, we've not been able to reach an agreement to the satisfaction of all concerned."
Meanwhile, the Government has promised to look at other ways nuclear projects like this can be funded to avoid further commercial clashes.
A spokesperson for the Department for Business, Energy and Industrial Strategy (BEIS) said: "As the Business Secretary set out in June, any deal needs to represent value for money and be the right one for UK consumers and taxpayers.
"Despite extensive negotiations and hard work by all sides, the Government and Hitachi are unable to reach agreement to proceed at this stage."
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Households are being urged to fix their energy bills now as experts predict prices could rise by up to £113 this year.
This is because they believe Ofgem will increase the level of its price cap, which came into force at the start of the year.
Millions of Brits are paying too much for their energy bills but can save hundreds by switching providers.
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