Davey, who heads the Department of Energy and Climate Change (DECC), said that in the long run, the plan would lower energy bills compared to the heights they would hit if the country continued with fossil fuels and their attendant volatile prices and damaging environmental effect.
A consumer funded nuclear program would mirror another form of government mandated energy subsidy - the Feed-in-Tariff - in which utilities raise money for renewables by raising rates. Utilities use some of that money to pay customers that install solar or wind equipment on their premises to generate their own electricity and to also feed the grid.
Even if the Government passes the draft bill, there's no certainty that nuclear companies would invest in new plants. David Toke, senior lecturer at the University of Birmingham, told the radio program that British nuclear would still remain "a dead duck." (Audio link expires May 29).
The UK's existing nuclear fleet was built decades ago, when the British power industry was still nationalized.
Meanwhile, several media outlets are reporting that the UK's nuclear regulator, the Office for Nuclear Regulation, now wants to extend the life of those reactors.
Photos: Dounreay plant from Guinnog via Wikimedia Commons. Ed Davey from DECC via Flickr.