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Hinkley Point C nuclear power station gets go-ahead Hinkley Point C nuclear power station gets government green light
(35 minutes later)
Theresa May has given the Hinkley Point C nuclear power station the go-ahead, despite the new prime minister’s apparent concerns about Chinese involvement in Britain’s nuclear industry. Theresa May has given the Hinkley Point C nuclear power station the go-ahead, and announced “significant new safeguards” for future foreign investment in critical infrastructure.
The controversial £18bn scheme, which has been criticised over costs as well as national security worries, will proceed following a “new agreement” with French company EDF, the government confirmed. The move follows a pause of the announcement of the deal amid concerns on the part of the new prime minister about Chinese involvement in Britain’s nuclear industry.
A government statement said: “Following a comprehensive review of the Hinkley Point C project, and a revised agreement with EDF, the government has decided to proceed with the first new nuclear power station for a generation. The controversial £18bn scheme in Somerset, which has been criticised over costs as well as national security worries, will proceed following a “new agreement” with French company EDF, the government confirmed on Thursday.
“However, ministers will impose a new legal framework for future foreign investment in Britain’s critical infrastructure, which will include nuclear energy and apply after Hinkley.” Hinkley would be the first new nuclear reactor built in Britain in two decades.
The deal had been due to be approved with a £6bn investment from China, before May placed the project under review in July. In a statement, the business secretary, Greg Clark, said Hinkley was approved but a new framework for foreign investment would come into force after that decision. That suggests China will be allowed to continue with its multibillion-pound passive investment in Hinkley Point.
Chinese officials had reacted by giving a series of veiled warnings that a decision by Britain to halting their investment in UK nuclear would be seen as a snub and would risk a supposed golden era of relations between the two countries. But it suggests there could potentially be restrictions that come into force after that, stopping China investing more actively in developing plants at Sizewell in Suffolk and Bradwell in Essex.
More details soon … As part of the changes, there will be changes to the government’s approach to the ownership and control of critical infrastructure to ensure that the full implications of foreign ownership are scrutinised for the purposes of national security.
A government statement said: “Following a comprehensive review of the Hinkley Point C project, and a revised agreement with EDF, the government has decided to proceed with the first new nuclear power station for a generation. However, ministers will impose a new legal framework for future foreign investment in Britain’s critical infrastructure, which will include nuclear energy and apply after Hinkley.”
The deal had been due to be approved with a £6bn investment from China when May placed the project under review in July.
Chinese officials reacted by giving a series of veiled warnings that a decision by Britain to halt their investment in UK nuclear would be seen as a snub and would put at risk a supposed golden era of relations between the two countries.
The government on Thursday said the revised agreement meant in principle that it would be able to “prevent the sale of EDF’s controlling stake prior to the completion of construction, without the prior notification and agreement of ministers”.
It said that “existing legal powers, and the new legal framework, will mean that the government is able to intervene in the sale of EDF’s stake once Hinkley is operational”.
The statement said the new legal framework for future foreign investment in “critical infrastructure” would mean the government would “take a special share in all future nuclear new build projects” so “significant stakes cannot be sold without the government’s knowledge or consent”.
It said there would be reforms to the approach to the “ownership and control of critical infrastructure to ensure that the full implications of foreign ownership are scrutinised for the purposes of national security” including a review of the public interest regime in the Enterprise Act 2002.
“The changes mean that, while the UK will remain one of the most open economies in the world, the public can be confident that foreign direct investment works in the country’s best interests,” it said.
Clark said: “Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the government’s agreement. Consequently, we have decided to proceed with the first new nuclear power station for a generation.
“Britain needs to upgrade its supplies of energy, and we have always been clear that nuclear is an important part of ensuring our future low-carbon energy security.”
The government is keeping a guaranteed price of £92.50 to EDF for every megawatt hour of electricity generated, despite concerns that is far higher than the market rate.