nuclear-news

France’s auditor brands Hinkley Point nuclear project as financially risky

Hinkley Point branded potentially risky for EDF by French auditor, Guardian 11 Mar 16 
Cour des Comptes urges greater study of nuclear project’s risks given poor recent investments and the fact EDF must fund likely cost overruns. EDF’s £18bn project to build nuclear reactors in Britain is potentially risky for the state-owned utility, whose foreign investments in recent years have proved disappointing, France’s top public auditor has said.

In a report on EDF’s international strategy, the Cour des Comptes – the French equivalent of the UK’s National Audit Office – said EDF and its 85% state shareholding should take a close look at the risks associated with the project to build two nuclear reactors at Hinkley Point in Somerset.

The report, which focuses on the 2009-2014 period – which includes EDF’s October 2013 agreement with the British government but not its deal in October 2015 with the Chinese utility CGN to take a one-third stake – said the financing around the Hinkley Point deal was potentially risky for EDF.

The auditor said EDF’s cashflow and high debt limit its capacity to invest abroad, especially given the huge sums needed to upgrade its ageing French nuclear plants.

“Even though the [Hinkley Point] deal has not been finalised, the complexity of the deal and especially the way it could impact the responsibility of EDF suffice to raise serious questions,” the auditor ……..http://www.theguardian.com/business/2016/mar/11/hinkley-point-risky-edf-french-auditor-cour-de-comptes?CMP=share_btn_tw

March 16, 2016 - Posted by Christina Macpherson | business and costs, France