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| Hinkley Point: Surprise delay for nuclear plant deal | Hinkley Point: Surprise delay for nuclear plant deal |
| (35 minutes later) | |
| Plans to build the first new UK nuclear plant in 20 years have suffered an unexpected delay after the government postponed a final decision until the early autumn. | Plans to build the first new UK nuclear plant in 20 years have suffered an unexpected delay after the government postponed a final decision until the early autumn. |
| French firm EDF, which is financing most of the £18bn Hinkley Point project in Somerset, approved the funding at a board meeting on Thursday. | French firm EDF, which is financing most of the £18bn Hinkley Point project in Somerset, approved the funding at a board meeting on Thursday. |
| However, the government then said it needed to review the project. | However, the government then said it needed to review the project. |
| The GMB union described the delay as "bewildering and bonkers". | The GMB union described the delay as "bewildering and bonkers". |
| Contracts were due to be signed on Friday. | Contracts were due to be signed on Friday. |
| Jean-Bernard Levy, EDF Group chief executive said he remained confident the project would go ahead. | Jean-Bernard Levy, EDF Group chief executive said he remained confident the project would go ahead. |
| "I have no doubt about the support of the British government led by Mrs May." | "I have no doubt about the support of the British government led by Mrs May." |
| 'Dithering and delay' | 'Dithering and delay' |
| Justin Bowden, the GMB union's national secretary for energy said: "Theresa May's decision to review the go-ahead on Hinkley Point C is bewildering and bonkers. | Justin Bowden, the GMB union's national secretary for energy said: "Theresa May's decision to review the go-ahead on Hinkley Point C is bewildering and bonkers. |
| "After years of procrastination, what is required is decisive action not dithering and more delay. | "After years of procrastination, what is required is decisive action not dithering and more delay. |
| "This unnecessary hesitation is putting finance for the project in doubt and 25,000 new jobs at risk immediately after Brexit. | "This unnecessary hesitation is putting finance for the project in doubt and 25,000 new jobs at risk immediately after Brexit. |
| "It is a gross error of judgment and must be reversed." | "It is a gross error of judgment and must be reversed." |
| Ian Liddell-Grainger, the Conservative MP whose constituency includes Hinkley Point, said Mrs May is doing exactly the right thing. | Ian Liddell-Grainger, the Conservative MP whose constituency includes Hinkley Point, said Mrs May is doing exactly the right thing. |
| "Theresa checks everything, and she wants to make sure this is right. | "Theresa checks everything, and she wants to make sure this is right. |
| "We're talking about three countries, we're talking about an enormous deal for the United Kingdom, for France and for China. She wants to make sure it's the right job and that's what she's doing she's checking it as all good Prime Ministers should." | "We're talking about three countries, we're talking about an enormous deal for the United Kingdom, for France and for China. She wants to make sure it's the right job and that's what she's doing she's checking it as all good Prime Ministers should." |
| Critics of the plan have warned of environmental damage and potential escalating costs. | Critics of the plan have warned of environmental damage and potential escalating costs. |
| They are also concerned that the plant is being built by foreign governments. | They are also concerned that the plant is being built by foreign governments. |
| One third of the £18bn cost is being provided by Chinese investors. | One third of the £18bn cost is being provided by Chinese investors. |
| China General Nuclear Power Corporation said it remained committed to the project. | China General Nuclear Power Corporation said it remained committed to the project. |
| Analysis: John Moylan, BBC Industry Correspondent | Analysis: John Moylan, BBC Industry Correspondent |
| EDF's decision yesterday to back Hinkley Point was expected to be swiftly followed on Friday by the government and the French firm signing the key contracts that underpin the deal. | EDF's decision yesterday to back Hinkley Point was expected to be swiftly followed on Friday by the government and the French firm signing the key contracts that underpin the deal. |
| Instead government sources say with a new leadership in the country it is right to consider this huge infrastructure project. | Instead government sources say with a new leadership in the country it is right to consider this huge infrastructure project. |
| They add that a timetable has been agreed with the stakeholders in the project. | They add that a timetable has been agreed with the stakeholders in the project. |
| But EDF and the government had briefed journalists in recent days that these key contracts would be signed today. | But EDF and the government had briefed journalists in recent days that these key contracts would be signed today. |
| Sources have told me that Chinese officials - here to sign up to their stakeholding in Hinkley - will now be returning home. | Sources have told me that Chinese officials - here to sign up to their stakeholding in Hinkley - will now be returning home. |
| There's no suggestion that the new government is going cold on this long delayed project. | There's no suggestion that the new government is going cold on this long delayed project. |
| But the events of the last 24 hours will send mixed signals about Britain being open for business in the wake of the referendum vote. | But the events of the last 24 hours will send mixed signals about Britain being open for business in the wake of the referendum vote. |
| Simon Jack: Hinkley delay is a high stakes bet | Simon Jack: Hinkley delay is a high stakes bet |
| Why is Hinkley Point important? | |
| Somerset hopes for Hinkley jobs boost | |
| Malcolm Grimston, a senior research fellow at Imperial College London, said the case for Hinkley Point C had not changed and the arguments for it remained strong. | |
| "My own view is gas prices cannot stay at artificially low levels forever on the back of the oil price collapse, as it is at the moment. | |
| "We need to invest in something more rapidly because so many of our power stations are reaching the end of their lives." | |
| 'Yet another blow' | |
| Tom Greatrex, the chief executive of the Nuclear Industry Association, urged the government to make a decision as soon as possible. | Tom Greatrex, the chief executive of the Nuclear Industry Association, urged the government to make a decision as soon as possible. |
| "We need to get on and do this and that's why I'm hoping the government make their decision very soon because if it goes on for a lengthy period of time we are going to run the risk of having real problems in terms of our energy supplies," he said. | "We need to get on and do this and that's why I'm hoping the government make their decision very soon because if it goes on for a lengthy period of time we are going to run the risk of having real problems in terms of our energy supplies," he said. |
| "Then what happens is that we end up paying a lot more and we end up paying for much more dirty power which we can't afford to do if we are to meet our climate commitments." | "Then what happens is that we end up paying a lot more and we end up paying for much more dirty power which we can't afford to do if we are to meet our climate commitments." |
| Claire Jacobson, head of climate, energy and environment policy at the EEF manufacturers' organisation said the government's decision was "yet another blow to a decision that has been hindered by many delays and uncertainties". | Claire Jacobson, head of climate, energy and environment policy at the EEF manufacturers' organisation said the government's decision was "yet another blow to a decision that has been hindered by many delays and uncertainties". |
| Hinkley Point C is expected to provide 7% of the UK's total electricity requirement. | Hinkley Point C is expected to provide 7% of the UK's total electricity requirement. |
| 'Too big to fail' | 'Too big to fail' |
| Environmentalists are also concerned about the plan. Greenpeace executive director John Sauven said: "Countless experts have warned that for British families this power station will be terrible value for money. | Environmentalists are also concerned about the plan. Greenpeace executive director John Sauven said: "Countless experts have warned that for British families this power station will be terrible value for money. |
| He added that EDF's decision to go ahead with the investment, "doesn't prove the UK is open for business post-Brexit - it just shows the Hinkley deal became too big to fail in the eyes of British and French politicians". | He added that EDF's decision to go ahead with the investment, "doesn't prove the UK is open for business post-Brexit - it just shows the Hinkley deal became too big to fail in the eyes of British and French politicians". |
| The campaign group added that more investment was needed for renewable energy such as offshore wind. | The campaign group added that more investment was needed for renewable energy such as offshore wind. |
| Hinkley Point timeline | Hinkley Point timeline |
| Jan 2006 - Government proposes nuclear as part of future energy mix | Jan 2006 - Government proposes nuclear as part of future energy mix |
| Mar 2013 - Construction of Hinkley Point approved | Mar 2013 - Construction of Hinkley Point approved |
| Oct 2013 - UK government agrees £92.50 per megawatt-hour will be paid for electricity produced at the Somerset site - around double the current market rate at the time | Oct 2013 - UK government agrees £92.50 per megawatt-hour will be paid for electricity produced at the Somerset site - around double the current market rate at the time |
| Oct 2015 - EDF signs investment agreement with China General Nuclear Power Corporation (CGN) | Oct 2015 - EDF signs investment agreement with China General Nuclear Power Corporation (CGN) |
| July 2016 - EDF board approves final investment decision, but the UK Government postpones a final decision on the project until autumn. | July 2016 - EDF board approves final investment decision, but the UK Government postpones a final decision on the project until autumn. |