Proposed nuclear reactor in Somerset could be delayed by two years if competition directorate launches full-scale investigation
Britain's planned nuclear reactor programme could be delayed for years, and the nation's long-term energy policy thrown into turmoil, as European commission officials launch the first stage of a formal investigation into the use of taxpayer subsidies to support the development.
EDF is aiming to complete negotiations with the UK government over new nuclear Contracts for Difference (CfDs) by the end of the first quarter of 2013, it confirmed today. The French-owned firm plans to make an investment decision on Hinkley Point C "as soon as possible" after that.
At its annual results presentation, chief executive Henri Proglio said EDF was seeking a 40-year contract for Hinkley Point C. Potential partners had come forward but nothing would be agreed until the contracts were in place and approved by Brussels.
Areva and EDF, the French nuclear groups, have both defended the cost of new nuclear projects despite the €2bn of extra cost overruns on their flagship next-generation reactor at Flamanville in Normandy.
The news that the reactor, the first built in France for 15 years, is expected to cost €8.5bn rather than the €3.3bn first forecast comes as questions are raised about whether nuclear power remains affordable.
British Gas owner Centrica is expected to write off £200m when it pulls out of the country's nuclear new build programme in the new year.
Centrica has the option of taking a 20 per cent stake in building nuclear power stations at Hinkley Point in Somerset and Sizewell in Suffolk alongside French group EDF.
The Government is planning to write a "blank cheque" to the nuclear industry by underwriting the cost of new power stations, leading energy academics have claimed in a letter to The Independent.
Under a major policy U-turn being considered by ministers, the taxpayer would be left to cover the cost of budget over-runs or building delays at new nuclear plants. Costly setbacks are almost inevitable with such complex construction projects.
The owner of Scottish Power has pulled out of a multibillion-pound plan to build atomic reactors, dealing a blow to Britain’s faltering nuclear renaissance.
The decision by Iberdrola, the Spanish energy giant, means there is now a question mark over two of the three groups that planned plants. Ministers hoped the trio would build a dozen reactors generating roughly a fifth of Britain’s power over the next 20 years.
The UK nuclear regulator said Wednesday it expects both the Areva EPR and the Westinghouse AP1000 reactors to have unresolved safety issues when the generic design assessment, or GDA, program completes next year. In a quarterly progress report released Wednesday, the NII said it has potential open issues in 10 out of 18 topical areas on the Areva EPR design review and in 16 out of the 18 topical areas on the Westinghouse AP1000 design.
REPAIRS at British Energy's coal-fired Eggborough power station will be delayed until next year after the company said maintenance of its ageing nuclear power reactors is taking longer than expected.
The nuclear power group, which recently agreed to a £12.5bn marriage with French giant EDF, said maintenance of a unit at Eggborough in North Yorkshire will now happen in the first quarter of next year rather than November.
Vincent de Rivaz, the chief executive of France's EDF Energy, which is now in control of the UK's nuclear energy programme, doesn't laugh when I ask if he has succeeded where Napoleon failed.
"It's not a war," he says, very seriously. "This is an amicable agreement between two companies which will bring good news to everyone involved. Will it bring stability to customers for electricity bills? Yes. Will it bring new jobs? Yes. Will it improve climate change? Yes."
Nuclear power firm British Energy looks poised to fall into foreign hands after it was reported French power giant EDF has agreed a £12.4 billion takeover of the firm.
The deal is worth 774p a share, the Wall Street Journal said, 9p higher than a rebuffed offer made in July.
