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| Hinkley Point C: either call the plan off or set a deadline and stick to it | Hinkley Point C: either call the plan off or set a deadline and stick to it |
| (5 months later) | |
| “I will start by saying clearly and categorically that Hinkley Point C will go ahead,” declared Vincent de Rivaz, the chief executive of EDF Energy, the UK end of the French state-owned company that is supposed to be building the £18bn nuclear plant in Somerset. | “I will start by saying clearly and categorically that Hinkley Point C will go ahead,” declared Vincent de Rivaz, the chief executive of EDF Energy, the UK end of the French state-owned company that is supposed to be building the £18bn nuclear plant in Somerset. |
| So that’s a definite yes? Not exactly. It’s a definite maybe because, as de Rivaz was obliged to concede in the next breath to MPs on the energy select committee, he cannot say when an investment decision will be made. | So that’s a definite yes? Not exactly. It’s a definite maybe because, as de Rivaz was obliged to concede in the next breath to MPs on the energy select committee, he cannot say when an investment decision will be made. |
| That is because events are out of his and EDF’s hands. Everything depends on the willingness of the French government to bail out an overindebted company that already faces the costly challenge of upgrading France’s nuclear generating capacity. The French economy minister, Emmanuel Macron, this week floated the notion of supplying the funds and making a final investment decision on Hinkley in early May, but it was unclear whether this “deadline” has any greater force than the others that have come and gone. | That is because events are out of his and EDF’s hands. Everything depends on the willingness of the French government to bail out an overindebted company that already faces the costly challenge of upgrading France’s nuclear generating capacity. The French economy minister, Emmanuel Macron, this week floated the notion of supplying the funds and making a final investment decision on Hinkley in early May, but it was unclear whether this “deadline” has any greater force than the others that have come and gone. |
| The Conservative MP James Heappey summed up the true state of affairs: “If the French government doesn’t commit to that recapitalisation, you can’t build us a power station because you’ve not got the cash.” De Rivaz, instead of agreeing with a plainly correct statement, descended into yet more bluster about how confident he remains. It was excruciating to watch. | The Conservative MP James Heappey summed up the true state of affairs: “If the French government doesn’t commit to that recapitalisation, you can’t build us a power station because you’ve not got the cash.” De Rivaz, instead of agreeing with a plainly correct statement, descended into yet more bluster about how confident he remains. It was excruciating to watch. |
| The best thing the UK government could do, as argued here for ages, is to call the whole thing off and write a better energy policy for the 2020s. EDF’s European pressurised reactor model is unproven and the versions under construction in Finland and France are nine and six years behind schedule respectively. Not only this, but the cost of Hinkley is hideous for future UK consumers. | The best thing the UK government could do, as argued here for ages, is to call the whole thing off and write a better energy policy for the 2020s. EDF’s European pressurised reactor model is unproven and the versions under construction in Finland and France are nine and six years behind schedule respectively. Not only this, but the cost of Hinkley is hideous for future UK consumers. |
| The chancellor, George Osborne, unwisely attached too much of his personal political capital to Hinkley. But even he should realise that this farce cannot be prolonged beyond May. Set a deadline and stick to it. | The chancellor, George Osborne, unwisely attached too much of his personal political capital to Hinkley. But even he should realise that this farce cannot be prolonged beyond May. Set a deadline and stick to it. |
| William Hill suffers as customers set online betting limits | William Hill suffers as customers set online betting limits |
| Shocking news from world of bookmaking. No, not the confirmation that William Hill lost money on every day of the Cheltenham Festival. These things happen and the bookies shouldn’t grumble, because their business would be smaller if the punters didn’t enjoy a winning run once in a while. | Shocking news from world of bookmaking. No, not the confirmation that William Hill lost money on every day of the Cheltenham Festival. These things happen and the bookies shouldn’t grumble, because their business would be smaller if the punters didn’t enjoy a winning run once in a while. |
| Instead, the revelation was within the other half of a profit warning that sent the share price down by 11%. It turns out that the Gambling Commission might not be quite the toothless watchdog we supposed. Online punters, it seems, are using the time out and automatic self-exclusion buttons that the commission insisted should be installed last year. | Instead, the revelation was within the other half of a profit warning that sent the share price down by 11%. It turns out that the Gambling Commission might not be quite the toothless watchdog we supposed. Online punters, it seems, are using the time out and automatic self-exclusion buttons that the commission insisted should be installed last year. |
| William Hill reckons its online profits will be hit by £20m-£25m this year, which at the upper end would be almost a fifth of last year’s online tally of £126m. Most of the self-excluders are banning themselves for the maximum three years and most had been playing casino games such as roulette. | William Hill reckons its online profits will be hit by £20m-£25m this year, which at the upper end would be almost a fifth of last year’s online tally of £126m. Most of the self-excluders are banning themselves for the maximum three years and most had been playing casino games such as roulette. |
| Give credit to the commission for a striking a small blow for gambling education. Its buttons may have underlined the message that fixed-odds games, where the house’s long-term edge is mathematically certain, really aren’t like horses, football or even poker. | Give credit to the commission for a striking a small blow for gambling education. Its buttons may have underlined the message that fixed-odds games, where the house’s long-term edge is mathematically certain, really aren’t like horses, football or even poker. |
| William Hill et al, once they have overcome the apparent shift in players’ behaviour, should count their blessings. If parts of the commission’s code of practice are seen to be effective, the heated public debate over “responsible gambling” may cool by a degree. | William Hill et al, once they have overcome the apparent shift in players’ behaviour, should count their blessings. If parts of the commission’s code of practice are seen to be effective, the heated public debate over “responsible gambling” may cool by a degree. |
| As for the commission, it shouldn’t spend long congratulating itself. We’re still sputtering over the Paddy Power case in which the bookie identified a gambling addict yet encouraged him to keep feeding its fixed-odds betting terminals. The commission solemnly declared that the chain was guilty of “serious failings”, but tickled Paddy Power with a £280,000 voluntary payment. A command to turn off the machines for a week would have sent a stiffer message. | As for the commission, it shouldn’t spend long congratulating itself. We’re still sputtering over the Paddy Power case in which the bookie identified a gambling addict yet encouraged him to keep feeding its fixed-odds betting terminals. The commission solemnly declared that the chain was guilty of “serious failings”, but tickled Paddy Power with a £280,000 voluntary payment. A command to turn off the machines for a week would have sent a stiffer message. |
| BHS takes another step on the long road back | BHS takes another step on the long road back |
| Hurrah, BHS is saved for a nation of grateful shoppers. Well, up to a point. The new owner, an outfit called Retail Acquisitions that bought the business from Sir Philip Green for £1 a year ago, has done well to secure the immediate future of BHS with the support of a thumping majority of creditors. There will now be steep cuts in rent on 87 of its 164 shops. | Hurrah, BHS is saved for a nation of grateful shoppers. Well, up to a point. The new owner, an outfit called Retail Acquisitions that bought the business from Sir Philip Green for £1 a year ago, has done well to secure the immediate future of BHS with the support of a thumping majority of creditors. There will now be steep cuts in rent on 87 of its 164 shops. |
| But that arrangement only gets BHS back in the game. The next step is to secure £100m of funding. The process is advanced, but the terms of a £60m loan from Gordon Brothers are unlikely to be generous. Then comes the much harder task of improving sales, reversing trading losses and earning the trust of understandably nervous suppliers. | But that arrangement only gets BHS back in the game. The next step is to secure £100m of funding. The process is advanced, but the terms of a £60m loan from Gordon Brothers are unlikely to be generous. Then comes the much harder task of improving sales, reversing trading losses and earning the trust of understandably nervous suppliers. |
| Darren Topp, the chief executive of BHS, has declared that he wants to make the chain “an iconic British brand again”. Full marks for ambition, but BHS, for a couple of decades, has been an icon of shoppers’ boredom with such department stores. Does anybody miss C&A? | Darren Topp, the chief executive of BHS, has declared that he wants to make the chain “an iconic British brand again”. Full marks for ambition, but BHS, for a couple of decades, has been an icon of shoppers’ boredom with such department stores. Does anybody miss C&A? |
| Topp’s plan hinges on the ability to increase like-for-like sales by 1% in the second and third years of a three-year plan. It doesn’t sound too difficult, but Marks & Spencer hasn’t produced annual growth in general merchandise in four years. Good luck. | Topp’s plan hinges on the ability to increase like-for-like sales by 1% in the second and third years of a three-year plan. It doesn’t sound too difficult, but Marks & Spencer hasn’t produced annual growth in general merchandise in four years. Good luck. |
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