Hinckley Point to get green light?
EDF are expect to make their final decision on a nuclear power point in Somerset by the end of this week. Chancellor of the Exchequer, Philip Hammond, has reiterated the government are committed to the build – even though energy costs will in response.
The project, which has been estimated to be over budget by £6billion, could be given the final go-ahead at EDF’s board meeting on 28 July.
In a 35 year deal, the government agreed to pay £92.50 per megawatt of electricity.
Unfortunately, due to decreases in wholesale energy prices, we will now be seeing the government take the brunt of the cost. Government payments are expected to rise from £6.1billion to £29.7billion over the contract length.
Hinckley Financial Doubts
French union opposition has shed doubt on whether EDF are currently financially available for such a project. Whilst one third of the capital costs are being supplied by Chinese investors, the remaining balance is still reliant on EDF.
The scheme has considerable backing from the UK and French governments – the French have an 85% stake in EDF. UK governments are reliant on the scheme providing 7% of our future electricity demands.
Future job prospects
Although the financial aspects of the project are altogether worrying, governments are also relying on the supply of jobs in the British market. Larger corporations have already confirmed that the UK is less attractive to them out of the EU. This lack of new business can affect the job market, so anything in house that can boost vacancy figures will always be backed by government.
EDF will make their official announcement later this week.