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| Version 1 | Version 2 |
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| Europe backs Hinkley nuclear plant | Europe backs Hinkley nuclear plant |
| (35 minutes later) | |
| A new £16bn nuclear power station at Hinkley Point in Somerset is to go ahead after it received final approval from European Union regulators. | A new £16bn nuclear power station at Hinkley Point in Somerset is to go ahead after it received final approval from European Union regulators. |
| The European Commission said Britain had agreed to "modify significantly" the financing for the project, reducing the burden on British taxpayers. | The European Commission said Britain had agreed to "modify significantly" the financing for the project, reducing the burden on British taxpayers. |
| In total 16 commissioners voted in favour of the project, just ahead of the 15 votes needed for approval. | In total 16 commissioners voted in favour of the project, just ahead of the 15 votes needed for approval. |
| The French firm EDF Energy is due to build the plant. | The French firm EDF Energy is due to build the plant. |
| The Commission had been examining whether the funding for the plant broke state aid rules. | The Commission had been examining whether the funding for the plant broke state aid rules. |
| However, it said the changes agreed by the British authorities would cut the subsidy by more than £1bn, meaning that state aid would remain "proportionate to the objective pursued, avoiding any undue distortions of competition". | However, it said the changes agreed by the British authorities would cut the subsidy by more than £1bn, meaning that state aid would remain "proportionate to the objective pursued, avoiding any undue distortions of competition". |
| The Commission said changes made meant gains generated by the project would be better shared with UK consumers. | |
| Profit share deal | |
| The government had already agreed that EDF will be paid a so called "strike price" of £92.50 for every megawatt hour of energy Hinkley C generates. This is almost twice the current wholesale cost of electricity, but this was a deliberate attempt by the government to compensate for the high cost of building the plant. | |
| However, the Commission said that if EDF's overall profits exceeded the rate estimated at the time it was awarded the contract, any gains would be shared with the public. | |
| It said it had also defined a second, higher threshold above which the public would be given more than half of the gains, through lowering the cost of the "strike price". | |
| "An increase in the profit rate of only one percentage point, for example, will generate savings of more than £1.2bn," it said. | |
| It said this agreement would now last for the entire lifetime of the project - an estimated 60 years. | |
| "These modifications will also achieve significant savings for UK taxpayers. On this basis and after a thorough investigation, the Commission can now conclude that the support is compatible with EU state aid rules," said Commission Vice-President Joaquin Almunia. | "These modifications will also achieve significant savings for UK taxpayers. On this basis and after a thorough investigation, the Commission can now conclude that the support is compatible with EU state aid rules," said Commission Vice-President Joaquin Almunia. |
| The two reactors planned for Hinkley, which will provide power for about 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 about 60 years, are a key part of the coalition's drive to shift the UK away from fossil fuels towards low-carbon power. |
| The nuclear power station is expected to begin operating in 2023. | The nuclear power station is expected to begin operating in 2023. |
| The government estimated last year that with new nuclear power - including Hinkley - the average energy bill in 2030 will be £77 lower than it would have been without the new plants. | |