The business secretary said the government’s push for nuclear power could initially increase energy bills.
Kwasi Kwarteng said the plan to build new power stations under a new energy strategy could have a “small effect” on bills.
But he told the BBC that “nuclear is back on the table” because the government sees it as a sustainable energy source, adding that it will eventually provide cheaper energy.
The energy strategy was released in April as Western countries grappled with high energy prices, dependence on Russian oil and gas and wider calls to end the age of fossil fuels to fight against climate change.
A fleet of new nuclear power stations is central to the strategy, with the prime minister suggesting a new reactor will be built every year, in a social media video to promote the plan.
As part of a goal to make 95% of electricity low-carbon by 2030, the strategy aims to produce up to 50 GW of offshore wind power by 2030, which will , officials say, would be more than enough to power every home in the UK.
The strategy also includes a goal to double the target of 10 GW of low-carbon hydrogen production by 2030, with at least half “green” hydrogen, produced from renewable electricity rather than of natural gas.
A multi-million pound package was then announced to help support the government‘s strategy ‘bold plans’.
Mr Kwarteng said the £375million investment will “unlock the huge potential” of hydrogen and nuclear power.
Boris Johnson has sought to defend the new energy strategy in the face of criticism he is doing nothing to help people with skyrocketing bills now.
He said the strategy – which aims to boost new nuclear power, offshore wind and hydrogen – is a long-term plan focused on energy supply, “repairing the mistakes of the past and making the big decisions now. “.
He said the government is “already doing a lot to help people with the immediate cost of living and of course we are going to do more”.