Energy review to consider nuclear power

The government will launch a comprehensive review of energy policy with a focus on developing nuclear power stations, Tony Blair has announced in a potential lifeline to struggling manufacturers.

The future is clean, and months of crippling high energy costs have brought energy policy "back on the agenda with a vengeance," the prime minister said today.

"Climate change is producing a sense of urgency," Blair said. "I can today announce that we have established a review of the UK's progress against the medium and long-term energy white paper goals.

Energy minister Malcolm Wicks will head the review and deliver a report in the summer of 2006.

Wicks' commission is expected to consider a controversial option of whether a new generation of nuclear power stations are key to Britain's future energy policy as the country transitions from being self-sufficient in its supply of gas to importing it.

"The Review will explore all the options open to us taking into account the important international context," Wicks said.

"There will inevitably be some difficult decisions and trade offs to be made in arriving at the right package of policy proposals. It is crucial that we stimulate a wide-ranging and informed debate and engage the public, business and industry throughout the process as well as academic, private sector, scientific, NGO and other experts."

Blair made his announcement at the Confederation of British Industry's (CBI) annual conference in London. His speech was held up for nearly an hour by Greenpeace protesters who hung anti-nuclear power banners from the roof of the conference hall.

When he finally took to the podium, delegates cheered the prime minister's announcement, and business organisations were quick to shower Blair with praise for an issue that has dogged his government for months.

"This is a crucial issue given rising demand, the threat of climate change and the UK's switch to becoming a net importer of oil and gas," said David Frost, director general of the British Chambers of Commerce (BCC).

"In light of these conflicting pressures, the government has tough decisions ahead to ensure we have sufficient, secure supplies of energy at affordable prices whilst considering environmental consequences."

Greenpeace director Stephen Tinday, however, called Blair's promised energy review a "smokescreen for pushing his newfound enthusiasm for nuclear power."