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EDF delays Hinkley Point C project until summer EDF delays Hinkley Point C nuclear power plant
(35 minutes later)
The Hinkley Point C nuclear plant, at the heart of government energy plans, has been hit by fresh delays in what is another blow to confidence surrounding an already troubled project. The Hinkley Point C nuclear plant, at the heart of government energy plans, has been hit by fresh delays in another blow to confidence surrounding an already troubled project.
EDF, the French energy company promoting the £18bn reactor scheme, admitted there would be no final investment decision – at least till the summer leading the environmental group Greenpeace to claim the project is “coming to a grinding halt”. EDF, the French energy company promoting the £18bn reactor scheme, admitted there would be no final investment decision at least till the summer, leading the environmental group Greenpeace to claim the project is “coming to a grinding halt”.
The latest setback comes less than a week after the French economics minister, Emmanuel Macron, told the BBC that the project would be given the go-ahead in the “coming week or month.” The latest setback comes less than a week after the French economy minister, Emmanuel Macron, told the BBC that the project would be given the go-ahead in the “coming week or month”.
EDF was itself aiming to be able to give the green light at the company’s annual general meeting on 12 May but has bowed to pressure from employees to consult an internal union-management council.EDF was itself aiming to be able to give the green light at the company’s annual general meeting on 12 May but has bowed to pressure from employees to consult an internal union-management council.
The company said in a statement after a board meeting: “The board has decided to undertake a formal, non-binding consultation process with the Comité Central d’Enterprise. This is (a) well understood statutory process of 60 days and the company will work with the CCE to define the detailed steps to reach a conclusion this summer.” The company said in a statement after a board meeting: “The board has decided to undertake a formal, non-binding consultation process with the comité central d’enterprise. This is [a] well understood statutory process of 60 days and the company will work with the CCE to define the detailed steps to reach a conclusion this summer.”
The scheme to build new reactors in Somerset has been dogged by delays and disputes since a formal signing in front of David Cameron last October. Work then was said to be ready to begin within days. But alarm has grown inside EDF, which is 85% owned by the French government, about the scale of its future financial commitments and debts at a time of plunging power prices and difficulties with other projects. The scheme to build new reactors in Somerset has been dogged by delays and disputes since a formal signing in front of David Cameron last October, when work was said to be ready to begin within days. But alarm has grown inside EDF, which is 85% owned by the French government, about the scale of its future financial commitments and debts at a time of plunging power prices and difficulties with other projects.
Thomas Piquemal, the company’s finance director, resigned last month after the company refused to agree to postpone investment till solutions were found to a raft of issues. There has been warnings from senior engineers about whether the new design of European Pressurised Reactors (EPRs) planned for Hinkley will be successful amid major delays and cost overruns at a similar project, Flamanville, in France. Hinkley has attracted criticism in Britain from a range of sources including the City for being seen as an overly-expensive project. The government has promised to pay £92.50 per megawatt hour for the power over 35 years - double the current cost. Ministers say the scheme, which could provide 7% of UK electricity, represents value for money in the longterm and can help lower UK carbon emissions.
Meanwhile the French unions, who have representatives on the board of the company, have been campaigning internally and externally for the project to be postponed until EDF’s financial stability is assured. Thomas Piquemal, EDF’s finance director, resigned last month after the company refused to agree to postpone investment till solutions were found to a series of issues. There have been warnings from senior engineers about whether the new design of European pressurised reactors (EPRs) planned for Hinkley will be successful amid delays and cost overruns at a similar project, Flamanville, in France.
Jean-Bernard Levy, the EDF chief executive, earlier tried to allay fears by promising there would be no go-ahead for Hinkley without the French government first giving financial help to the company. Meanwhile the French unions, which have representatives on the board of the company, have been campaigning internally and externally for the project to be postponed until EDF’s financial stability is assured.
Jean-Bernard Lévy, the EDF chief executive, earlier tried to allay fears by promising there would be no go-ahead for Hinkley without the French government first giving financial help to the company.
On Friday it indicated it had got this, saying in a statement: “Confirmation of the significant recapitalisation of EDF agreed by the board makes it possible for EDF to proceed with its strategic investment programme – including Hinkley Point C.”On Friday it indicated it had got this, saying in a statement: “Confirmation of the significant recapitalisation of EDF agreed by the board makes it possible for EDF to proceed with its strategic investment programme – including Hinkley Point C.”
It added: “Today’s announcement underlines EDF’s solid commitment to its CAP 2030 (investment) strategy including the Hinkley Point C project and has provided it with a solid financial footing notwithstanding the challenges of current market conditions.” It added: “Today’s announcement underlines EDF’s solid commitment to its CAP 2030 [investment] strategy including the Hinkley Point C project and has provided it with a solid financial footing notwithstanding the challenges of current market conditions.”
But John Sauven, Greenpeace director said the latest delay showed that EDF was in an “utter mess.” But John Sauven, the Greenpeace director, said the latest delay showed that EDF was in an “utter mess.”
He added: “Delays to EDF making a decision about whether to invest in Hinkley are nothing new. So much so that it’s been 14 months since it was first said that the decision would be coming imminently. But this latest delay from EDF is different. President Hollande, the French economy minister and EDF’s CEO have all very publicly promised the UK government a final decision before the 12 May. He added: “Delays to EDF making a decision about whether to invest in Hinkley are nothing new. So much so that it’s been 14 months since it was first said that the decision would be coming imminently. But this latest delay from EDF is different. President Hollande, the French economy minister and EDF’s CEO have all very publicly promised the UK government a final decision before 12 May.
“Backtracking on this pledge now is symbolic of the utter mess that EDF is in. But even if they could agree a finance package it could be declared illegal state aid by the European Commission. This may now be the sign that the entire project is coming to a grinding halt and the UK government urgently needs to back renewable energy as a more reliable alternative.” “Backtracking on this pledge now is symbolic of the utter mess that EDF is in. But even if they could agree a finance package it could be declared illegal state aid by the European commission. This may now be the sign that the entire project is coming to a grinding halt and the UK government urgently needs to back renewable energy as a more reliable alternative.”