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Chris Huhne Letter: Tax­pay­ers shouldn’t be foot­ing bill for EDF fail­ings

I was astonished and saddened by your report that both Bruno Le
Maire, the French finance minister, and Luc Rémont, chief executive of
EDF, are pressing the UK government to help with the cost overrun at
Hinkley Point C, the EDF nuclear plant under construction in the UK.

I regret EDF’s €12.9bn write down, but it is the French company’s
responsibility (Report, February 17). I will save French blushes by not
quoting all the promises that were made by the company about the low cost
of its nuclear energy (a fraction even of what was ultimately agreed). What
is wholly unacceptable, however, is the notion that the UK taxpayer should
in any way be on the hook for cost overruns when it was always made utterly
explicit — by me and my successor — that this would never happen.

A clear condition of the Hinkley project was that EDF would be entirely and
solely responsible for the construction costs and risks, and the UK
government would merely guarantee a price (subsidy-free, taking account of
carbon costs) for the electricity output once the plant started. Nothing
could be more unambiguous either legally, politically or morally.

Neither I nor my immediate successors would ever have agreed any contract — a
contract for difference — on any other basis. Any British minister who
now goes back on that arrangement would be betraying their responsibility
to the exchequer, and would be a legitimate target for the public accounts
committee.

 FT 28th Feb 2024

https://www.ft.com/content/175d212b-0a93-48f5-b68c-2a58bd098796

March 2, 2024 - Posted by Christina Macpherson | France, politics international, UK