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| Hinkley Point deal 'risky and expensive' | Hinkley Point deal 'risky and expensive' |
| (35 minutes later) | |
| UK government plans for a new £18bn nuclear power station have come under fire from public auditors, who call it "a risky and expensive project". | UK government plans for a new £18bn nuclear power station have come under fire from public auditors, who call it "a risky and expensive project". |
| The National Audit Office (NAO) said the costs and risks for consumers had not been sufficiently considered. | |
| Its report comes nine months after the government granted final approval for the project, which is being financed by the French and Chinese governments. | Its report comes nine months after the government granted final approval for the project, which is being financed by the French and Chinese governments. |
| The government said building the plant was an "important strategic decision". | The government said building the plant was an "important strategic decision". |
| State-controlled French energy firm EDF is funding two-thirds of the project, which will create more than 25,000 jobs, with China investing the remaining £6bn. | State-controlled French energy firm EDF is funding two-thirds of the project, which will create more than 25,000 jobs, with China investing the remaining £6bn. |
| Critics of the deal have warned of escalating costs and the implications of allowing nuclear power plants to be built in the UK by foreign governments. | Critics of the deal have warned of escalating costs and the implications of allowing nuclear power plants to be built in the UK by foreign governments. |
| Case 'uncertain' | Case 'uncertain' |
| The NAO's report centred on the role of the Department for Business, Energy and Industrial Strategy (BEIS) in finalising the deal in 2016. | The NAO's report centred on the role of the Department for Business, Energy and Industrial Strategy (BEIS) in finalising the deal in 2016. |
| At the time, said the NAO, the department's own value-for-money tests showed "the economic case for Hinkley Point C was marginal and subject to significant uncertainty". | At the time, said the NAO, the department's own value-for-money tests showed "the economic case for Hinkley Point C was marginal and subject to significant uncertainty". |
| "But the department's capacity to take alternative approaches to the deal were limited after it had agreed terms," the NAO added. | "But the department's capacity to take alternative approaches to the deal were limited after it had agreed terms," the NAO added. |
| "The government has increasingly emphasised Hinkley Point C's unquantified strategic benefits, but it has little control over these and no plan yet in place to realise them." | "The government has increasingly emphasised Hinkley Point C's unquantified strategic benefits, but it has little control over these and no plan yet in place to realise them." |
| It added that consumers were "locked in" to years of paying for the plant. | It added that consumers were "locked in" to years of paying for the plant. |
| In response to the report, a BEIS spokesperson said building the plant was "an important strategic decision to ensure that nuclear is part of a diverse energy mix". | In response to the report, a BEIS spokesperson said building the plant was "an important strategic decision to ensure that nuclear is part of a diverse energy mix". |
| The department said the project would provide "clean, reliable electricity powering six million homes and creating more than 26,000 jobs and apprenticeships in the process". | The department said the project would provide "clean, reliable electricity powering six million homes and creating more than 26,000 jobs and apprenticeships in the process". |
| EDF Energy said the plant "remains good value for consumers compared with alternative choices". | EDF Energy said the plant "remains good value for consumers compared with alternative choices". |
| The firm added: "Consumers won't pay a penny until the power station is operating and it is EDF Energy and [China's] CGN who will take the risk and responsibility of delivering it. | The firm added: "Consumers won't pay a penny until the power station is operating and it is EDF Energy and [China's] CGN who will take the risk and responsibility of delivering it. |
| "The project is having a major impact on the UK's industrial capacity, jobs and skills. Relaunching the UK nuclear new build industry at Hinkley Point C will enable costs for future projects, in particular Sizewell C, to be lower." | "The project is having a major impact on the UK's industrial capacity, jobs and skills. Relaunching the UK nuclear new build industry at Hinkley Point C will enable costs for future projects, in particular Sizewell C, to be lower." |
| Time pressure | Time pressure |
| The Nuclear Industry Association (NIA) said the report showed that the plant was "competitive with other low-carbon projects" and that "alternatives would cost more". | The Nuclear Industry Association (NIA) said the report showed that the plant was "competitive with other low-carbon projects" and that "alternatives would cost more". |
| However, NIA chief executive Tom Greatrex added: "The NAO analysis of the strike price also highlights that using a different financing structure could have resulted in a lower strike price. | However, NIA chief executive Tom Greatrex added: "The NAO analysis of the strike price also highlights that using a different financing structure could have resulted in a lower strike price. |
| "That is something government should reflect on as other new nuclear projects advance." | "That is something government should reflect on as other new nuclear projects advance." |
| Speaking to the BBC, Mr Greatrex said: "With two-thirds of our capacity coming to the end of its life by 2030, we need to replace that, we need to do that in as low-carbon a way as possible, we need to do that in a way where we're not overly exposed to the volatility of fossil fuel prices on international markets. Nuclear, alongside renewables and other technologies, helps us do that." | Speaking to the BBC, Mr Greatrex said: "With two-thirds of our capacity coming to the end of its life by 2030, we need to replace that, we need to do that in as low-carbon a way as possible, we need to do that in a way where we're not overly exposed to the volatility of fossil fuel prices on international markets. Nuclear, alongside renewables and other technologies, helps us do that." |
| "It's really important that we get new capacity built, because we've got so much that is going offline in a relatively short period of time. | "It's really important that we get new capacity built, because we've got so much that is going offline in a relatively short period of time. |
| "We've left it a long time, and actually saying we should reassess and start again - we haven't got the luxury of time to be able to do that." | "We've left it a long time, and actually saying we should reassess and start again - we haven't got the luxury of time to be able to do that." |