nuclear-news

Hinkley Point C nuclear subsidy plan queried by European commission  Terry Macalister  The Guardian, Thursday 19 December 13 Officials promise to investigate, saying they doubt claims of market failure and fear UK will start a ‘subsidy race’ The European commission has started an investigation into UK plans to subsidise the construction and operation of Hinkley Point C nuclear power station in Somerset, in a challenge to the government’s plans to overhaul Britain’s creaking energy infrastructure.On the day royal assent was finally given to the coalition’s controversial Energy Act, the EU’s executive arm expressed doubts that British ministers could justify state aid to nuclear which it estimated could reach £17bn.

The EC warned of the risk of a “subsidy race” between member states and Joaquín Almunia, vice-president for competition policy, described the aid package as a complex measure of an unprecedented nature and scale……The British government has always denied that the financial support is a subsidy ……

there has been speculation in Brussels that the commission has made up its mind that the Hinkley move is in effect an unfair subsidy, with the only question being what kind of changes or sanctions it may demand or impose on Britain.

Günther Oettinger, the European union’s energy commissioner, warned last month that the 35-year subsidy regime “may be a problem” while earlier describing the UK nuclear project in an unguarded moment as “Soviet” in style. The financial support for EDF and its Chinese partners includes a £10bn loan guarantee plus an inflation-linked “strike price” of £92.50 per megawatt hour for 35 years – twice the current price for electricity in Britain…….http://www.theguardian.com/business/2013/dec/18/hinkley-point-c-nuclear-subsidy-european-commission