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| UK nuclear power plant gets go-ahead | UK nuclear power plant gets go-ahead |
| (35 minutes later) | |
| The government has given the go-ahead for the UK's first new nuclear station in a generation. | The government has given the go-ahead for the UK's first new nuclear station in a generation. |
| France's EDF Energy will lead a consortium, which includes Chinese investors, to build the Hinkley Point C plant in Somerset. | France's EDF Energy will lead a consortium, which includes Chinese investors, to build the Hinkley Point C plant in Somerset. |
| Ministers say the deal will help take the UK towards low-carbon power and lower generating costs in future. | Ministers say the deal will help take the UK towards low-carbon power and lower generating costs in future. |
| Critics warn guaranteeing the group a price for electricity at twice the current level will raise bills. | Critics warn guaranteeing the group a price for electricity at twice the current level will raise bills. |
| "For the first time, a nuclear station in this country will not have been built with money from the British taxpayer," said Secretary of State for Energy Edward Davey. | "For the first time, a nuclear station in this country will not have been built with money from the British taxpayer," said Secretary of State for Energy Edward Davey. |
| The two reactors planned for Hinkley, which will provide power for around 60 years, are a key part of the coalition's drive to shift the UK away from fossil fuels towards low-carbon power. | The two reactors planned for Hinkley, which will provide power for around 60 years, are a key part of the coalition's drive to shift the UK away from fossil fuels towards low-carbon power. |
| Ministers and EDF have been in talks for more than a year about the minimum price the company will be paid for electricity produced at the site, which the government estimates will cost £16bn to build. | Ministers and EDF have been in talks for more than a year about the minimum price the company will be paid for electricity produced at the site, which the government estimates will cost £16bn to build. |
| The two sides have now agreed the "strike price" of £92.50 for every megawatt hour of energy Hinkley C generates per hour. This is almost twice the current wholesale cost of electricity. | |
| 'Competitive' | 'Competitive' |
| This will fall to £89.50 for every megawatt hour of energy if EDF Group goes ahead with plans to develop a new nuclear power station at Sizewell in Suffolk. Doing both would allow EDF to share costs across both projects. | |
| Mr Davey said the deal was "competitive" with other large-scale clean energy and gas projects. | Mr Davey said the deal was "competitive" with other large-scale clean energy and gas projects. |
| "While consumers won't pay anything up front, they'll share directly in any gains made from the project coming in under budget," he added. | "While consumers won't pay anything up front, they'll share directly in any gains made from the project coming in under budget," he added. |
| However, Dr Paul Dorfman, from the Energy Institute at University College London, said "what it equates to actually is a subsidy and the coalition said they would never subsidise nuclear". | |
| He added: "It is essentially a subsidy of between what we calculate to be £800m to £1bn a year that the UK taxpayer and energy consumer will be putting into the deep pockets of Chinese and French corporations, which are essentially their governments." | |
| China invests | |
| Chinese companies China National Nuclear Corporation and China General Nuclear Power Corporation will be minority shareholders in the project. | Chinese companies China National Nuclear Corporation and China General Nuclear Power Corporation will be minority shareholders in the project. |
| The move follows Chancellor George Osborne's announcement last week that Chinese firms will be allowed to invest in civil nuclear projects in the UK. | The move follows Chancellor George Osborne's announcement last week that Chinese firms will be allowed to invest in civil nuclear projects in the UK. |
| Prime Minister David Cameron said that it was "an excellent deal for Britain and British consumers". | |
| "This underlines the confidence there is in Britain and makes clear that we are very much open for business," he added. | |
| The existing plant at Hinkley currently produces about 1% of the UK's total energy, but this is expected to rise to 7% once the expansion is complete in 2023. | The existing plant at Hinkley currently produces about 1% of the UK's total energy, but this is expected to rise to 7% once the expansion is complete in 2023. |
| The announcement is not legally binding and it will be 2014 before EDF makes a final investment decision on the project. The plans will also require state aid clearance from the European Commission. | The announcement is not legally binding and it will be 2014 before EDF makes a final investment decision on the project. The plans will also require state aid clearance from the European Commission. |
| But it comes as concerns about domestic energy bills move up the agenda after SSE and British Gas, two of the UK's "big six" gas and electricity suppliers raised prices. | But it comes as concerns about domestic energy bills move up the agenda after SSE and British Gas, two of the UK's "big six" gas and electricity suppliers raised prices. |
| The government estimates that the average bill in 2030 will be £77 lower than they would be without new nuclear. | The government estimates that the average bill in 2030 will be £77 lower than they would be without new nuclear. |
| Around 25,000 jobs are expected to be created during construction of the power plant as well as 900 permanent jobs during its 60-year operation. |