Government energy plan 'unworkable', MPs warn The renaissance of nuclear power has been threatened by the withdrawal of RWE and EON, the two big German utilities, from planned new developments. Government attempts to encourage nuclear investment through long-term price agreements without direct subsidies have caused confusion and have drawn scathing criticism from MPs in their report. Discussions with Chinese state companies have raised hopes that new foreign partners will be formed, possibly to build five plants, representing investment of £35bn to fill the nuclear gap. Energy companies are using the opportunity presented by the MPs report to reinforce their concerns. RWE, the German owner of npower and Innogy which has pulled out of nuclear investment in Britain, makes a renewed plea to the government for "clarity and simplicity" and says the bill in its present form may lead to less rather than more competition. The MPs support the proposal for long-term power contracts to reassure investors but are dismayed by the solution. They say that in practice the initiative has become "so complex that the proposal has now arguably become unworkable." Tim Yeo, committee chairman, says the Treasury is to blame because it has refused to underwrite the contracts with the result that they might not be legally enforceable, could push up the cost of capital and end up with consumers footing the bill. He said: "Nobody wants to see a blank cheque written out for green energy but the Government must provide investors with more certainty about exactly how much money will be available." Tim Yeo, Tory chairman of the Commons Energy and Climate Change committee, has been accused of a conflict of interest over his decision to accept the presidency of the Renewable Energy Association. Sir Bernard Ingham, secretary of the Supporters of Nuclear Energy said the group is concerned about the appointment and questioned whether it reflected a change in his support for nuclear power. Sir Bernard pressed Mr Yeo for assurances he remains a "strong supporter of nuclear power."