UK to Decide Hinkley Point C in September

The UK’s capacity for generating surprise surged again with the government’s statement late July 28 that it wanted to peruse the contract that its predecessor agreed with state-controlled EDF on building Hinkley Point C.

EDF’s plans for a signing ceremony and a big media splash were cancelled; organisations that came out for or against the expected announcement a few hours earlier made no mention of the need for UK government approval. Finance minister Philip Hammond said two weeks ago that the project had to go ahead though he added there was uncertainty about the £18bn project. The technology it is to rely on is untested and the prototypes at Flamanville, France and Olkiluoto in Finland are already late and over budget. 

The Business and Energy Secretary said it would take until September to review the agreement, which provides for a relatively high output price of £92.50/MWh, equivalent to a £30bn subsidy, although all the project risk is to be borne by EDF. In a statement, Greg Clark said: “The UK needs a reliable and secure energy supply and the government believes that nuclear energy is an important part of the mix. The government will now consider carefully all the component parts of this project and make its decision in the early autumn.”

The EDF board voted July 28 in favour of a final investment decision and later that day said: "Following this decision, the conditions have been met to allow EDF to sign the contracts with the British Government, EDF’s historic partner China General Nuclear Power Generation (CGN), and the main suppliers of the project."

Greg Clark: 'Hold your horses.'

But the decision cost another job as another EDF board member Gerard Magnin resigned in protest. He follows the company’s CFO Thomas Piquemal, who quit over the plans to go ahead with the project earlier this summer. The project’s cost is feared too big for the company. Unions were also opposed. But the French government, which owns 85% and stumped up a capital injection of €3bn earlier in the month, was keen to showcase the national technology. Joining EDF in a 2:1 partnership is the Chinese state owned company CGN.

William Powell