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Nuclear Reactors.

Community Veteran
Posts: 7,914
Thanks: 594
Fixes: 8
Registered: 02-08-2007

Nuclear Reactors.

I See the government have agreed that Hitachi can build 2 nuclear reactors in this country but how is it the government are not building these instead of a foreign company ?
Some of the first Nuclear Power reactors were built in this country so how they work is no secret, would it not make more sense for the government to build them ? If Hitachi is going to build them it can only be because they see a profit in it so how come the government can't see a profit (or savings) by building them.
2 REPLIES
Community Veteran
Posts: 16,834
Thanks: 1,124
Fixes: 13
Registered: 06-11-2007

Re: Nuclear Reactors.

It makes financial sense for the Government NOT to build them...
1. If the Government, put out tenders, they know they are going to get "ripped off" by the companies involved, because they will tender a low start price to get the work, then gradually add on increases, that the Government must pay because they have got "so far" in the build process, it would cost more money to get out of the contract(s) and start afresh with new contractors..
2. If the Government do actually build them, and they make a loss, they will be castigated
3. If the Government do actually build them and they make a profit.... the public will demand that electricity prices should be reduced
Either way... it is lose lose situation.... Undecided
Community Veteran
Posts: 7,914
Thanks: 594
Fixes: 8
Registered: 02-08-2007

Re: Nuclear Reactors.

When you put out a tender does it not include a clause which says, X will be built in Y days ? If it goes beyond the time frame then a penalty is payable for each day it goes over, same with it going over the cost agreed, that should be a problem for the company not the purchaser.
I suspect most Private firms would include something like that in the contract so why not the Government ?
Logically it would be utterly stupid to agree a provisional price and date for completion as you would be asking for trouble as previously demonstrated by some government contracts.