Fears over UK’s energy as EDF dodges Hinkley nuclear plant decision, Standard UK,  MICHAEL BOW, 16 Feb 16   Europe’s biggest energy firm, EDF, fuelled concerns about keeping Britain’s lights on after it was forced into a backdoor rights issue and failed to commit to the UK’s biggest nuclear project.

The UK’s energy future was left up in the air after EDF dodged a decision on Hinkley Point C, the planned nuclear plant which will provide 7% of Britain’s electricity and employ 25,000 people by 2025.

The French giant said the first phase of construction would launch “very soon”, but failed to commit to a timescale or confirm whether it had funding in place, casting doubt on the future of the project.  ……

Prime Minister David Cameron has been trying to smooth through the £18 billion construction costs of the plant in Somerset by wooing Chinese investors to back the project.

EDF has already sold a 33.5% stake to China General Nuclear Power Corporation, but today’s dividend cut could ignite fears the energy giant lacks the firepower to execute the plan.

The group confounded investor expectations by slashing the dividend to €1.10 for 2015 from €1.25 in 2014. It has also offered shareholders the choice of taking shares instead of cash……

Lower prices in the energy market have hurt EDF, particularly for wholesale electricity, which are stretching the company’s finances.

Earlier this month EDF Energy, the firm’s UK energy company, also cut standard gas prices by 5%.

The tumbling price of power has forced EDF to cuts costs and investments. It reduced operating expenses by €300 million last year and will seek to take out €700 million more within the next two years… http://www.standard.co.uk/business/fears-over-uks-energy-as-edf-dodges-hinkley-nuclear-plant-decision-a3181446.html.