UK Government approves Hinkley Nuclear Power Station

UK Government approves Hinkley Nuclear Power Station

The UK’s first nuclear plant for 20 years will be allowed to go ahead, but with new requirements on its owner, EDF.

The Hinkley Point C nuclear power station has been approved by Government today. The UK’s first nuclear plant for 20 years will be allowed to go ahead, but with new requirements on its owner, EDF. Ministers have also decided to impose ‘significant new safeguards’ for future foreign investment in nuclear energy which will apply after Hinkley.

The revised agreement with EDF includes:

  • The Government being able to prevent EDF Energy from selling a controlling stake after Hinkley is complete, without prior notification
  • The Government being able to intervene in the sale once it is operational

Meanwhile, a new legal framework for future nuclear energy projects will mean that, after Hinkley, the Government will take a ‘special share’ in all future nuclear new build projects

Secretary of State for the Department of Business, Energy and Industrial Strategy (BEIS) Greg 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.”

The Contracts for Difference for EDF Energy’s Hinkley Point C power stations would provide a set inflation-linked price of £92.50 (2011/12 price) per megawatt hour for 35 years once the plant begins operating. When the wholesale price is below the agreed strike price the difference is paid to the generator, with the cost passed on to consumers.

Veronica Truman

Posted by on Thursday, the 15. September at 11.45

Veronica Truman has been working in the energy industry since 2002 and currently manages the Market Intelligence, Analytics and Bureau Teams for Utilitywise. These teams are responsible for bespoke strategic consultancy projects for their clients, as well as delivering detailed analytics on clients’ consumption data. In addition to this, the Analytics team have developed models to forecast commodity and non-commodity charges out to 2040, and a market-leading Triad forecasting model.