No decision from French Government on Hinkley Point C for five months

• 8 years ago (2016-04-25)
• David Flin

Europe 1068 Nuclear 643

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Emmanuel Macron, the French Economy Minister, said that France is committed to supporting the £18 billion nuclear power station planned for construction by EDF at Hinkley Point C in the UK, but that no final decision will be made before September. Macron denied suggestions that EDF would cancel the project or delay it for several years, but he did say that EDF needed to delay a formal announcement to proceed for at least five months while it tried to persuade the company’s unions of the viability of the project.

Senior engineers and unions at EDF have argued that the project could fatally damage the company, and have asked for a delay of at least two years to allow uncertainties about the new generation reactors planned for Hinkley to be resolved. An internal report to the EDF board warned in February that the project could be financially disastrous, despite the generous terms for payment of electricity from the site agreed by the UK Government.

Macron confirmed that the French Government, which owns 80 per cent of EDF, was providing an extra €5 billion to strengthen the company’s finances. He said that it would consist of a €3 billion contribution to a €4 billion increase in equity, and the waiving of €2 billion in dividends due to the state for 2016 and 2017.