nuclear-news

EDF told not to expect UK to step in to fund Hinkley Point C flagship nuclear project

Cost overruns a ‘commercial issue’ for Hinkley Point C’s French
developer after CGN halts payments, says British official.

The UK government has signalled it will not step in to help France’s EDF fund
Hinkley Point C after its Chinese partner CGN halted payments to cover
mounting cost overruns on Britain’s flagship nuclear power project. The
reluctance of the British government to intervene comes as the price tag
for the power plant under construction in south-west England is likely to
exceed the revised £32.7bn estimate EDF put on it earlier this year,
according to people close to discussions.

CGN, EDF’s partner in Hinkley Point C, had agreed to finance 33.5 per cent of the original £18bn cost of the plant in 2016, with the French group responsible for the remainder. But
after paying its contracted share, CGN has not made payments linked to the
overruns in recent weeks, three people familiar with the matter said.

The French group warned earlier this year that the Chinese group could refuse
to pick up the extra costs. One UK government official said there were no
plans to step in to fill the gap left by CGN, suggesting EDF could pull in
other investors. “It is a commercial contract which we obviously don’t
play a part in financing,” the official said, adding: “It would first
be a matter for the shareholders.”

One industry source said pulling other
investors into the project at this stage would be “complicated”. The
French economy ministry said it was in contact with London over the issue.
“We’re working with the British government to ensure the rollout of the
UK nuclear programme, including on the financing front,” an official in
Paris said.

 FT 14th Dec 2023

https://www.ft.com/content/2bccd67f-a3c6-48d1-baa5-8ef9d54cdf67

December 16, 2023 - Posted by Christina Macpherson | business and costs, politics, UK