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EDF plan to help finance Hinkley nuclear project could be illegal

Legal challenge fuels doubt over Westcountry nuclear power station By WMNK Rossiter  http://www.plymouthherald.co.uk/Legal-challenge-fuels-doubt-Westcountry-nuclear/story-29157974-detail/story.html April 22, 2016 By Keith Rossiter A French government plan to help energy company EDF to build a nuclear power station in Somerset could be illegal, barristers have warned.

Greenpeace and green energy company Ecotricity released a legal opinion on a proposed package of financial support.

French economy minister Emmanuel Macron insisted this week that the £18 billion Hinkley Point C power station will go ahead, in spite of doubts over the viability of the project.

EDF won the contract to build Hinkley Point, but has delayed giving the final go-ahead for months. The company has still not signed off a contract with its Chinese partner China General Nuclear Power Corporation.

Mr Macron said he was “actively working” with EDF and the UK Government to draw up the “final points” of a deal for Hinkley and that it was “very important for France” that the project went ahead.

EDF declined to comment on the Greenpeace claims.

The latest speculation, fuelled by Mr Macron, is that the French government would accept dividends from EDF in the form of shares rather than cash.

The legal experts say that the capital injection this would give to EDF would constitute state aid.

“This would destroy a level playing field for European energy companies,” Greenpeace said.

John Sauven, Greenpeace UK executive director, said: “The only way Hinkley can be kept alive is on the life support machine of state aid.

“The UK Government needs to stop penalising the UK renewable energy industry in favour of propping up an ailing state-owned nuclear industry in France.

“The UK should be a haven for renewable energy investment given the massive potential for wind, solar and tidal to cost effectively meet our energy needs.”

The legal opinion from competition and EU law barristers Jon Turner QC, Ben Rayment and Julian Gregory says that the reported refinancing plans for EDF are likely to be illegal under EU law unless and until they are approved by the European Commission.

Greenpeace has written to Amber Rudd, the Energy Secretary, and George Osborne, the Chancellor, warning them not to proceed with the project unless the French state support has been notified to and approved by the Commission.

Ecotricity says State aid for Hinkley would be harmful to EDF’s competitors.

Dale Vince, Ecotricity founder, said: “It’s time for everyone to realise that we’ve reached the end of the road for Hinkley Point – it’s not going to happen.

“Illegal state aid is one thing, but there are technical problems too. EDF is yet to build one of these reactors and their first two attempts are, between them, 16 years late and billions over budget.

“Our government needs to change its stance on green energy, which powered a quarter of the country last year and could do so much more if the sector received even a fraction of the economic and political support given the nuclear industry.”

Molly Scott Cato, Green MEP for the South West, has already asked the European Commission to investigate whether a proposed rescue plan for Hinkley C was in breach of European state aid rules.

She said: “The numbers for the Hinkley deal have never stacked up and it is clear that the commercial case for this white elephant is dead.

“We now have a political battle where the stakes for both the UK and France are just too high to admit failure.”

This week Amber Rudd said that further delays or even a cancellation of Hinkley would not compromise national energy supply.

Dr Scott Cato said: “We know the lights won’t go out if there is a concerted effort to implement Plan B based on renewable energy, energy efficiency and innovative smart grid and energy storage solutions.

“This could be delivered in time to prevent blackouts and create 122,000 quality jobs – many more than nuclear could ever hope to deliver.”

April 23, 2016 - Posted by Christina Macpherson | France, Legal, UK