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You can find the current article at its original source at https://www.theguardian.com/uk-news/2016/jul/29/hinkley-point-c-why-has-government-delayed-final-approval
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| Why have ministers delayed final approval for Hinkley Point C? | Why have ministers delayed final approval for Hinkley Point C? |
| (35 minutes later) | |
| The government’s decision to delay final approval of the controversial Hinkley Point C nuclear power station has cast fresh doubt on the project. | The government’s decision to delay final approval of the controversial Hinkley Point C nuclear power station has cast fresh doubt on the project. |
| Theresa May’s government plans to review the proposed £18bn plant before making an announcement in early autumn. | Theresa May’s government plans to review the proposed £18bn plant before making an announcement in early autumn. |
| Related: Hinkley Point C timeline: all the key moments | Related: Hinkley Point C timeline: all the key moments |
| The move has shocked EDF, which was expecting to sign contracts for the plant on Friday after the board of the largely French state-owned company signed off the project. | |
| This is what could have caused the government to launch a review: | This is what could have caused the government to launch a review: |
| Theresa May simply wants time to study the project | Theresa May simply wants time to study the project |
| This would be understandable, given that May’s government is barely a month old. David Cameron and George Osborne backed the project heavily, and it is unlikely that a review would have taken place if they were still prime minister and chancellor, but they are now consigned to the backbenches. | This would be understandable, given that May’s government is barely a month old. David Cameron and George Osborne backed the project heavily, and it is unlikely that a review would have taken place if they were still prime minister and chancellor, but they are now consigned to the backbenches. |
| Downing Street sources insist that May agreed the review and a new timetable with François Hollande, the French president. However, if this explanation is correct, why was EDF surprised? The company had planned a VIP party and an interview with its UK chief executive, Vincent de Rivaz, to celebrate Hinkley Point C being approved. | Downing Street sources insist that May agreed the review and a new timetable with François Hollande, the French president. However, if this explanation is correct, why was EDF surprised? The company had planned a VIP party and an interview with its UK chief executive, Vincent de Rivaz, to celebrate Hinkley Point C being approved. |
| China | China |
| The Hinkley Point C project is being led by EDF, but China is providing major financial support. The state-backed China General Nuclear Power Corporation has agreed to take a 33% stake in the project. But May could be having doubts about Chinese involvement in such an important domestic project. | The Hinkley Point C project is being led by EDF, but China is providing major financial support. The state-backed China General Nuclear Power Corporation has agreed to take a 33% stake in the project. But May could be having doubts about Chinese involvement in such an important domestic project. |
| Last year, Nick Timothy, her joint chief of staff and then aide, accused Osborne of “selling our national security to China”. In a piece for Conservative Home, he claimed that China was effectively buying Britain’s silence on allegations of Chinese human rights abuse. On Hinkley Point, Timothy said: “Security experts, reportedly inside as well as outside government, are worried that the Chinese could use their role to build weaknesses into computer systems, which will allow them to shut down Britain’s energy production at will.” | Last year, Nick Timothy, her joint chief of staff and then aide, accused Osborne of “selling our national security to China”. In a piece for Conservative Home, he claimed that China was effectively buying Britain’s silence on allegations of Chinese human rights abuse. On Hinkley Point, Timothy said: “Security experts, reportedly inside as well as outside government, are worried that the Chinese could use their role to build weaknesses into computer systems, which will allow them to shut down Britain’s energy production at will.” |
| Renegotiation of costs | Renegotiation of costs |
| Although EDF and China will initially pay for the construction of Hinkley Point C, which will create 25,000 jobs, the cost will eventually be picked up by British taxpayers. The National Audit Office has warned that taxpayers could end up paying more than £30bn through a range of subsidies designed to support the project. | Although EDF and China will initially pay for the construction of Hinkley Point C, which will create 25,000 jobs, the cost will eventually be picked up by British taxpayers. The National Audit Office has warned that taxpayers could end up paying more than £30bn through a range of subsidies designed to support the project. |
| The government has agreed a “strike price”, a guaranteed price for the electricity generated by Hinkley Point C, of £92.50 a megawatt hour for 35 years. This is more than twice the cost of existing wholesale electricity prices. The government could now look to renegotiate these terms, although EDF, whose finances are in a perilous state, is unlikely to be accommodating. | The government has agreed a “strike price”, a guaranteed price for the electricity generated by Hinkley Point C, of £92.50 a megawatt hour for 35 years. This is more than twice the cost of existing wholesale electricity prices. The government could now look to renegotiate these terms, although EDF, whose finances are in a perilous state, is unlikely to be accommodating. |
| Negotiating tactic for Brexit | Negotiating tactic for Brexit |
| The construction of Hinkley Point C would represent a remarkable collaboration between the British and French governments. The UK is a vital growth market for EDF, with other major industrialised countries such as Germany and Japan closing down their nuclear reactors. By delaying approval of the project, the prime minister may be looking for some leverage with France as Britain begins talks about leaving the EU. | The construction of Hinkley Point C would represent a remarkable collaboration between the British and French governments. The UK is a vital growth market for EDF, with other major industrialised countries such as Germany and Japan closing down their nuclear reactors. By delaying approval of the project, the prime minister may be looking for some leverage with France as Britain begins talks about leaving the EU. |
| The project is going to be scrapped | The project is going to be scrapped |
| To its critics in the UK and France, Hinkley Point C is an expensive, unsafe and outdated white elephant. Greenpeace claims that the government would be better off developing cheaper renewable energy sources, while trade unions in France believe that EDF simply cannot afford the project. The British government’s decision to delay approval could be a means of shelving the project without anyone losing face. | To its critics in the UK and France, Hinkley Point C is an expensive, unsafe and outdated white elephant. Greenpeace claims that the government would be better off developing cheaper renewable energy sources, while trade unions in France believe that EDF simply cannot afford the project. The British government’s decision to delay approval could be a means of shelving the project without anyone losing face. |