nuclear-news

The deal for the Somerset nuclear power station sees the government paying EDF a fixed price for electricity generation over 35 years from 2025. But if the wholesale price falls, the government pays EDF a top-up fee.

The National Audit Office had previously estimated that this top-up fee would amount to £6.1 billion during the 35 year period, but in its latest report the watchdog has scaled up the estimate to £29.7 billion – nearly doubling the cost of the £37 billion construction project.

The report also expressed fears that taxpayers could end up with a range of other payments under debt guarantees agreed by the government with EDF. “Supporting early new nuclear projects could lead to higher costs in the short term than continuing to support wind and solar. The cost competitiveness of nuclear power is weakening as wind and solar become more established,” the report, Nuclear Power in the UK, states.

Environmental lobbying group Greenpeace has jumped upon the opportunity to call upon the new Prime Minister to scrap the entire project.

John Sauven, director of Greenpeace UK, said: “The government’s line that Hinkley is a good deal for billpayers is falling apart. Today’s damaging report from the NAO should kill this myth once and for all. It makes the government’s slash and burn approach towards help for homegrown renewable energy companies look completely out of step with reality. Unlike nuclear the cost of renewables is falling every year.”