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Energy chief says Hinkley Point is a deal out of date and too expensive

Hinkley Point deal out of date and too expensive, says energy chief, Telegraph, UK,   Emily Gosden, energy editor 3 SEPTEMBER 2016  The head of energy giant ScottishPower has waded into the row over Hinkley Point, insisting that the controversial subsidy deal for EDF’s proposed nuclear plant should be renegotiated because it is too expensive.

Keith Anderson, the firm’s chief corporate officer, said the deal, provisionally agreed by the Government in 2013 following lengthy negotiations, no longer made sense in the light of lower gas and offshore wind costs.

“It looks like a contract that was written five years ago on a business case that was probably pulled together 10 years ago. It looks out of line with what’s going on in the market now,” he said.

In an interview with Telegraph, Mr Anderson praised Theresa May’s “brave” decision to review the £18bn project and urged her to look at it in its entirety, not just her apparent concerns over Chinese state nuclear firms’ involvement.Becoming the latest high-profile figure to criticise the deal, Mr Anderson said that it now looked “expensive” and that gas and offshore wind offered faster, easier and cheaper ways of keeping the lights on and decarbonising, respectively.

“I can’t understand why anybody feels we need to sign a contract of that size and over that time period, at that price,” he said.

ScottishPower is seeking government support to develop both offshore wind and gas-fired power stations.

Its East Anglia offshore wind farm project last year won a subsidy contract at nearly £120 per MWh for 15 years. However, costs are falling rapidly, with ministers setting a cap of £105 per MWh on future contracts and a target of £85. EDF has insisted the deal is good value……http://www.telegraph.co.uk/business/2016/09/03/hinkley-point-deal-out-of-date-and-too-expensive-says-energy-chi/

September 9, 2016 - Posted by Christina Macpherson | business and costs, politics, UK