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Nuclear corporation EDF’s Annual General Meeting faces more financial gloom

Poster EDF menteurNuclear giant EDF Energy reports sales fall as AGM looms, BBC News, 11 May 16  French energy giant EDF says sales fell 7% in the first three months of the year in the face of stiff competition, a mild winter and lower energy prices.

The figures come ahead of Wednesday’s AGM where investors will quiz management over their plans for the Hinkley Point nuclear plant in the UK.

EDF, 85% controlled by the French state, has struggled to find the cash for its 66.5% stake in the project.

In April it pushed a final decision on the £18bn plant back to September.

Chief financial officer Thomas Piquemal resigned in April following an internal disagreement over whether to press on with the controversial project.

However, EDF has outlined plans to raise €4bn, with up to €3bn provided by the French government.

Tough markets

Credit rating agencies are due to assess the group in the coming days and their verdict on its finances will determine how easy it will be for the group to raise cash.

Meanwhile, tough market conditions mean EDF is cutting costs and planning to sell €10bn in assets by 2020, including a stake in French power-grid operator RTE……http://www.bbc.com/news/business-36262029

May 11, 2016 Posted by | business and costs, France, politics | Leave a comment

Former Electricite de France SA Chief Financial Officer says he quit because of financial risks of Hinkley nuclear project

scrutiny-on-costsflag-franceflag-UKEx-EDF CFO Quit Over Financial Risks From U.K. Nuclear Project, Bloomberg,    FrancoisDeBeaup   

    • Piquemal says French utility needs to strengthen balance sheet
    • EDF can’t afford significant downgrade in rating: Piquemal

Former Electricite de France SA Chief Financial Officer Thomas Piquemal said he quit two months ago to highlight the risks of proceeding with the 18 billion-pound ($26 billion) Hinkley Point nuclear power project without additional financing.

The timetable pushed by EDF Chairman and Chief Executive Officer Jean-Bernard Levy for an investment decision on the U.K. project meant there wouldn’t have been time to strengthen the utility’s balance sheet, Piquemal told a hearing at the National Assembly in Paris. That would have left the company reliant on its 85 percent shareholder, the French state, providing funding and threatened EDF with the same fate as troubled nuclear-reactor builder Areva SA, he said.

“A new nuclear project is an extra risk for a company,” Piquemal said in his first public statement since quitting. “I didn’t want to approve a decision that could leave EDF in Areva’s situation one day.”……

Financial Strain

Speculation has mounted over the future of Hinkley Point since Piquemal resigned amid concerns the project would put EDF under too much financial strain, while labor unions have called for a three-year delay until similar nuclear plants built by the company start operating in France and China…….
EDF has held off on making a final investment decision even after forming a partnership with China General Nuclear Power Corp. and securing guaranteed power prices from the U.K. government at almost three times the current market rate for 35 years.Rating companies will probably downgrade EDF because large nuclear projects such as Hinkley Point will increase its risk profile, the ex-CFO said. While EDF had no financing problems at the end of 2015, it can’t afford a “significant” downgrade that would push its hybrid debt into the “junk” category because it would complicate a potential refinancing from 2020, Piquemal said. http://www.bloomberg.com/news/articles/2016-05-04/ex-edf-cfo-quit-over-financial-risks-from-u-k-nuclear-project

 

May 6, 2016 Posted by | business and costs, France, UK | Leave a comment

UK nuclear parts made at French plant in fakery probe

 Telegraph   Emily Gosdenenergy editor 4 MAY 2016 Parts of the Sizewell B nuclear power station in Suffolk were made at a French plant being investigated over possible fake manufacturing records, EDF Energy has confirmed.

EDF said components destined for the proposed Hinkley Point C plant were also made at the Areva-owned Le Creusot plant, where anomalies in documents related to 400 nuclear components have so far been identified.The revelations come as EDF’s former chief financial officer Thomas Piquemal, broke his silence to explain his fears over the Hinkley project that led to his resignation in March.

Mr Piquemal said he had sought a three-year delay to Hinkley as he was not prepared to “bet 60 to 70pc of [EDF’S] equity on a technology that has not yet proven that it can work and which takes 10 years to build”.

He said the proposed reactor technology involved “major construction risk”.

EDF has already postponed a decision on the £18bn Hinkley project until September as it consults with unions on a plan to shore up its balance sheet, but the problems at the Le Creusot plant have raised further doubts about the project and as well as nuclear safety at existing plants………http://www.telegraph.co.uk/business/2016/05/04/uk-nuclear-parts-made-at-french-plant-in-fakery-probe/

May 6, 2016 Posted by | business and costs, France, secrets,lies and civil liberties | Leave a comment

‘400 irregularities’ in nuclear power plant parts – admits France’s nuclear firm AREVA

AREVA crumblingflag-franceFrance’s nuclear giant Areva admits to ‘400 irregularities’ in nuclear power plant parts, with 50 still in operation, Telegraph, UK,   Henry Samuel, Paris 3 MAY 2016 
France’s ailing nuclear giant, Areva, faced a major scandal on Tuesday after the country’s nuclear watchdog confirmed there have been “irregularities” in 400 parts produced in its reactors since 1965, and that “around 50 are currently in service in France’s nuclear power plant fleet”.

France’s independent Nuclear Safety Authority, ASN, said the “irregularities” were listed in an audit it had ordered from Areva after it detected a “very serious anomaly” in a reactor vessel in the country’s Flamanville EPR nuclear plant, the same model Britain plans to use for two new plants at Hinkley Point.

The fault in the vessel destined to house the plant’s nuclear fuel and confine its radioactivity was detected last year.

“These irregularities consist in incoherencies, modifications or omissions in manufacturing dossiers,” ASN said in a statement.

The revelation came hours after Areva’s director general admitted that 400 documents assessing whether parts of nuclear plants met required standards may have been “falsified”.

The doubts over documents supposed to rubber-stamp the quality of parts destined for new-generation nuclear power reactors will be a cause for serious concern for the British government as it is poised to finalise a controversial, multi-billion pound contract to build reactors at Hinkley Point designed by Areva.

Areva launched an audit late 2015 into anomalies at the Le Creusot Forge site, which  specialises in highly complex moulded parts for new-generation nuclear reactors.  http://www.telegraph.co.uk/news/2016/05/03/frances-nuclear-giant-areva-admits-to-400-irregularities-in-nucl/

May 4, 2016 Posted by | France, safety | Leave a comment

Hinkley nuclear project for UK and France political reasons: let’s stop pretending otherwise

The real point of this story is that nuclear power is not commercially viable but has become a state-sponsored technology. There is nothing wrong with state supported technology. But we could save a lot of time and money by not pretending that it is something else.

flag-UKflag-franceLets Stop Pretending Nuclear Power Is Commercially Viable http://oilprice.com/Alternative-Energy/Nuclear-Power/Lets-Stop-Pretending-Nuclear-Power-Is-Commercially-Viable.html  By 
 Sat, 30 April 2016, First its new president, Jean-Bernard Levy, said French state utility EDF would delay a decision on its joint French-Chinese nuclear project in the UK, Hinkley Point. That was over a year ago. Then the CFO of EDF, Thomas Piquemal, quit reportedly because he opposed the project on fi-nancial grounds. That was a short time ago. Then after a leaked memos, the French gov-ernment just announced that EDF would be raising more money and the Hinkley decision would now come in September.

Hinkley costs
David Cameron’s government in the UK backs this exceedingly expensive project and the French government controls both EDF and Areva, the nuclear manufacturer that developed the nuclear system to be used at Hinkley Point.(Two other plants in Finland and China using this technology are still under construction, behind schedule and over budget.) As part of a plan to rescue Areva (which has lost money in each of the past four years and has negative equity, meaning the share-holder investment has been wiped out), EDF agreed, earlier in the year to buy Areva’s nuclear engineering division. Clearly, France views its nuclear ambitions as a matter of national prestige and intends to support Hinkley Point.

Now for the finances. These British nuclear units will cost roughly £18 billion ($27 billion). EDF has already sold a 35 percent share to the Chinese state nuclear company. However EDF still has to find more outside investors and get its ownership of the plant below 50 percent or it will have to consolidate Hinkley Point on its books and show all of the project’s debt on its own balance sheet.

At the end of 2015, long- and short-term debt made up 79 percent of EDF’s capital, an already high number, and two of the three major bond rating agencies have assigned EDF’s debt a “nega-tive outlook.” EDF also needs more capital to take over Areva, finish the French nukes still under construction and refurbish its own domestic fleet of aging nuclear power stations. All this will take place during what amounts to a financial crisis within the European electricity markets.
So the French government just announced a $4.5 billion capital raising for EDF (the government will buy the lion’s share of the newly issued stock). But from the look of the numbers that share offering constitutes a modest fraction of what is required by a firm that will have to compete more and more in a competitive electricity market.
Last year EDF reported a return on shareholder investment of less than 5 percent (an adequate return for bondholders not stockholders). To reduce the total debt burden to a more manageable 70 percent would require the sale of another $16 billion of stock, a painful process, especially for existing shareholders when returns and share prices are so depressed. More than likely EDF will explore asset sales and other ingenious means to rearrange assets in order to shore up its overly indebted balance sheet.

If we were gamblers we would not wager that EDF will take the obvious first step towards restor-ing its financial health and cancels the Hinkley project. Of course, if David Cameron loses the Brexit vote (a referendum to take the UK out of the European Union) and is ejected from Number Ten Downing Street, a new Prime Minister might take a more skeptical view of Hinkley Point.

The real point of this story is that nuclear power is not commercially viable but has become a state-sponsored technology. There is nothing wrong with state supported technology. But we could save a lot of time and money by not pretending that it is something else.

May 2, 2016 Posted by | France, politics, politics international, UK | Leave a comment

French and Russian nuclear utilities to work together, on decommissiong, and more

money-in-wastes-2French and Russian nuclear utilities extend collaboration, World Nuclear News, 26 April 2016

French utility EDF has signed an agreement to extend its cooperation with Rosenergoatom, the operator of Russia’s civil nuclear power plants. The companies will cooperate in reactor operations, decommissioning and waste management…..

Through the agreement, EDF and Rosenergoatom intend to develop cooperation in areas such as the maintenance, modernization and operating period extension of nuclear power plants, as well as decommissioning and radioactive waste management http://www.world-nuclear-news.org/C-French-and-Russian-nuclear-utilities-extend-collaboration-2604164.html

April 27, 2016 Posted by | business and costs, France, Russia | Leave a comment

Further delay for UK Hinkley nuclear project, as EDF decides to consult unions

text Hinkley cancelledflag-franceFresh setback for Hinkley Point as EDF consults French unions, Telegraph UK   Alan Tovey 22 APRIL 2016  Plans by EDF to build the new Hinkley Point nuclear power station have been further delayed after the French energy company said it would consult with unions before announcing its final investment decision.

After a board meeting on Friday, the company said it had agreed a “significant” recapitalisation that would make it “possible for EDF to proceed with its strategic investment programme – including Hinkley Point C”.

However, the directors added they would go through a formal consultation process with unions over the decision. Although it will not be binding on the board, this statutory process would take 60 days, pushing it close to the June 23 referendum on whether or not Britain will remain in the UK.

Sources close to the French government – which is EDF’s majority shareholder with an 85pc stake – said administrative delays could easily push this consultation past the date of the Brexit vote.

The recapitalisation will see EDF raise €4bn (£3bn) to support its investment plans, with the Paris government planning to sign up for €3bn of the fundraising.

Consulting the unions over the decision presents fresh hurdles to the muchdelayed plan to build the Hinkley Point power station, the first in a fleet of new nuclear power stations for the UK.

Ten years ago, EDF was predicting Hinkley would be supplying power by 2017.

Unions are sceptical about whether EDF can afford the investment – which the French firm is financing two thirds of, with the rest coming from Chinese investors – and have made public their opposition to the scheme.

Some senior staff at EDF are also against the power company’s involvement in such a huge project…….http://www.telegraph.co.uk/business/2016/04/24/fresh-setback-for-hinkley-point-as-edf-consults-french-unions/

April 25, 2016 Posted by | business and costs, employment, France, UK | Leave a comment

European law mean sit is illegal for France’s govt to fund EDF’s Hinkley nuclear project

justiceflag-EUFrance funding Hinkley C ‘would be illegal’ under EU competition rules say Greenpeace and Ecotricity http://www.cheddarvalleygazette.co.uk/France-funding-Hinkley-C-illegal-EU-competition/story-29158662-detail/story.html By Cheddar Valley Gazette   April 24, 2016 The European Commission is ‘almost certain’ to block the French Government spending billions of pounds of taxpayers’ money to make sure the Hinkley C nuclear power station project is completed.

That was the view of a coalition of West environmentalists today, who said if the French president Francois Hollande was to plunge £3 billion into Hinkley C, it would breach European state aid rules.

The European Union forbids states using taxpayers’ money to invest in projects which favour one company over another – and a new report revealed this morning by a leading London law firm says that would clearly be illegal under EU competition rules.

EDF, the firm planning to build a third nuclear power station in west Somerset, is majority-owned by the French Government anyway, but Greenpeace, Stroud-based renewable energy firm Ecotricity and the Green Party’s South West MEP, Molly Scott Cato, have all said they would challenge that decision, and ask the European Commission to block any state investment by France.

EDF is putting in half the £18 billion Hinkley C project cost, two Chinese nuclear energy firms are investing a third, but attempts by EDF to find that shortfall – one-sixth, or around £3 billion – have failed amid fears the project would be uneconomic.

The firm has gone to French Government ministers to ask for state backing, and that is ‘expected’ to be ratified and the project get the go-ahead in the next couple of weeks.

But the environmentalists who have long campaigned against Hinkley C said this morning that would breach EU competition rules, arguing the French Government should not be allowed to use taxpayers’ money to compete against energy providers in this country who receive no such help.

Dale Vince, Ecotricity founder, said his firm would consider legal action to stop Hinkley C. “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,” he said.

“Illegal state aid is one thing, and we’ll work with Greenpeace to challenge that if it happens, but it’s not just financial issues, there are technical problems with Hinkley Point too – EDF are 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,” he added.

Greenpeace have yesterday wrote to energy minister Amber Rudd and chancellor George Osborne warning the ministers not to proceed with the project unless and until the French state support has been notified to and approved by the EU Commission.

“The only way Hinkley can be kept alive is on the life support machine of state aid,” said Greenpeace boss John Sauven. “EDF, if it is to stay in business, needs a new vision which is not looking backwards. And 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.

“Globally, the nuclear market is shrinking year by year overtaken by the huge surge in renewable energy. 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,” he added.

The legal opinion is given by Jon Turner QC, Ben Rayment and Julian Gregory, three eminent competition and EU law barristers from Monckton Chambers.

It sets out how the French government’s reported refinancing plans for EDF are likely to be illegal under EU law unless and until they are approved by the European Commission.

The European Commission’s investigation of state aid takes around a year, and it is doubtful that approval would be given.

“The numbers for the Hinkley deal have never stacked up and it is clear that the commercial case for this white elephant is dead,” said Green MEP for the south west, Molly Scott Cato.

“We have now a political battle where the stakes for both the UK and France are just too high to admit failure. But we cannot let this override EU rules on state aid or fair competition.”

“With EDF close to bankruptcy and serious questions over the legality of state aid for the project the French government and the French President are showing themselves to be totally irresponsible. The Board of EDF must put the interests of its shareholders and employees first and avoid committing economic suicide by rejecting a final investment decision,” she added.

EDF has consistently denied claims it was benefiting from illegal state aid, and robustly defended the legal action from Austria that the British Government’s agreement to pay EDF double the current electricity price for the energy Hinkley C will produce.

April 25, 2016 Posted by | France, Legal | 1 Comment

France’s tax-payers €3bn to save debt-ridden nuclear corporation EDF

text-my-money-2flag-franceState pays €3bn to bail out EDF http://www.connexionfrance.com/france-edf-electricity-areva-nuclear-investment-bail-out-view-article.html April 24, 2016

THE GOVERNMENT has agreed to bail out struggling electricity company EDF to the tune of €3billion, months after it agreed a similar capital injection for nuclear energy giant Areva.

On Friday, EDF announced a €4billion capital investment programme, and the state – which owns an 85% stake in the company – has agreed to pay 75% of the cost.

The electricity giant has been fighting to bring its massive debts under control in the face of weak European electricity prices. It has also invested in several major projects, including a new British nuclear power plant at Hinkley Point.

The government said it would accept EDF shares as its dividend in 2016 and 2017, rather than cash. “The State reaffirms its confidence in the management of the company and all its employees for the success of EDF as part of a quality social dialogue,” argued the Ministries of Economy and Finance in a joint statement.

In return, EDF said it would aim to reduce its costs by €1billion in 2019 compared to 2015, and shave €2billion off its investment plans over the next three years. It had originally planned to make €700million in savings over three years. The group also plans to raise €10 billion by selling off gas, coal and oil interests.

April 25, 2016 Posted by | France, politics | Leave a comment

Employee’s legal threat hangs over EDF’s U.K. Nuclear Project

justiceflag-franceEDF Unions Threaten to Go to Court Over U.K. Nuclear Project, Bloomberg, April 22, 2016

  • Employee representatives ask to be consulted before decision
  • Trade unions say they’ll sue if not consulted in advance
  • Electricite de France SA’s unions are threatening to take the company to court if employees are not consulted in advance on a decision concerning a proposed 18 billion-pound ($25.8 billion) U.K. atomic plant project.

    EDF’s workers committee, which includes representatives from the biggest unions, met near Paris and voted to take legal action should the company fail to consult employees on Hinkley Point, according to a statement Thursday. The project is key to EDF earnings and has prompted disagreements between management and unions, it said.

    “We ask that the workers’ committee is consulted before any decision by management or the board,” the committee said. If that didn’t happen then “the committee would be forced to take legal action to have any decision linked to the Hinkley Point project suspended or annulled.”

     The threat marks the latest attempt by workers to delay a decision, given concerns about EDF’s finances amid falling power prices across Europe. Union FO has already threatened to call for a strike. EAS, an association of EDF employees holding the company’s shares, is asking the stock market regulator to require that the French government, which owns 85 percent of EDF, repurchases shares at the initial public offering price…..http://www.bloomberg.com/news/articles/2016-04-21/edf-unions-threaten-to-go-to-court-over-u-k-nuclear-project

April 25, 2016 Posted by | employment, France, Legal | Leave a comment

French corporation EDF and its zombie nuclear reactors

AREVA EDF crumblingEdF: Living with its ZOMBIE REACTORS!, Jonathon Porritt, 24 Apr 16, 

You seriously wouldn’t want to be a Director of EdF at the moment. The agenda for an average Board Meeting must be seriously gloomy on each and every occasion. Here’s how I imagine the key agenda items for their last meeting on 16th February – helpfullysummarised by EdF’s Company Secretary.

Item 1: Existing EPR construction projects
1.1 Olkiluoto (Finland)
Continuing, horrendous cost overruns, leading to ongoing legal stand-off with Finnish partners. Already delayed by seven years, but (hopefully!) could be finished by 2018.
1.2 Flamanville (France)
Continuing, horrendous cost overruns. Already delayed by nine years, but (hopefully!) could be finished by 2018.
1.3 Taishan (China)
Serious problems with both reactors under construction, but, this being China, everything’s shrouded in secrecy. WARNING: This could be much worse than we currently understand.
1.4 Pressure vessels
Still waiting for final safety assessment from French regulators. WARNING: There could be really serious problems here, despite our best efforts to ‘work with’ the regulator.
1.5 Deadlines/UK Treasury
These deadlines are now CRITICAL – as in EXISTENTIAL.
UK Treasury’s loan guarantees are linked to Flamanville operating successfully. And if it is not working properly by 2020, loan guarantee will be completely withdrawn.

Item 2: New reactors at Hinkley Point, Somerset………

Item 3: Extending the life of our UK reactors……

Item 4: Extending the life of our French reactors…….

Item 5: Energy Transition Law (France)…….

Item 6: Financial position…….

…..The implications of all this for the UK couldn’t possibly be more severe. Initially, HinkleyPoint was meant to be on stream by 2025, generating a whacking great 7% of total electricity supply. Earlier delays meant that this had already slipped to 2030. Now that the start date has slipped again, to 2019, AT THE EARLIEST, that 2030 date looks insanely optimistic…….http://www.jonathonporritt.com/blog/edf-living-its-zombie-reactors

April 25, 2016 Posted by | business and costs, France, UK | Leave a comment

France gives €3bn bailout to EDF’s Hinkley nuclear plant

Tax - payersflag-franceFrance gives €3bn lifeline to Hinkley nuclear plant, Sunday Times, Robin Pagnamenta, Energy Editor, 24 Apr 16A decision on the proposed nuclear power station will not be taken until after an EDF shareholders’ meeeting Erance has thrown its support behind EDF, the French electricity company, and its plan to build the £18 billion nuclear power station at Hinkley Point, Somerset, by supplying a €3 billion lifeline.

President Hollande’s administration has agreed to put in the money towards a proposed €4 billion (£3 billion) cash-raising the company is proposing by issuing new shares. EDF said last night that the confirmation of the fundraising made it possible for the company to proceed with investments including Hinkley Point C by putting it on a “solid financial footing”……http://www.thetimes.co.uk/article/union-threats-force-edf-to-delay-hinkley-decision-0zf56xjms

April 25, 2016 Posted by | France, politics | Leave a comment

EDF wants to extend depreciation period for nuclear plants this year, but nuclear watchdog may not be willing

Poster EDF menteurEDF to extend depreciation period for nuclear plants this year – CEO https://au.news.yahoo.com/world/a/31423313/edf-to-extend-depreciation-period-for-nuclear-plants-this-year-ceo/ Reuters on April 23, 2016 PARIS – French utility EDF will extend the depreciation period for its nuclear plants this year, its CEO said in a newspaper interview, an accounting move that will free up cash for costly investment projects in France and Britain.

“By the closing of our first-half results, we will draw the accounting consequences of our intention to extend the lifespan of our existing nuclear plants beyond 40 years,” EDF CEO Jean-Bernard Levy said in Saturday’s Le Figaro newspaper.

EDF had said before it intended to extend the lifespan of its French nuclear plants to 50 or 60 years, beyond the 40 years they were initially built for. Energy Minister Segolene Royal said in February that the government was willing to give the go-ahead for such a move.

But French nuclear watchdog ASN is the only authority allowed to grant such an extension, and it has said a decision on the matter would not come before 2018-2019. To make the accounting change, which would automatically boost EDF’s profits, the company must convince its auditors that there is a good chance of the extension being granted.

In 2003, EDF extended the depreciation schedule for nuclear reactors in its accounts to 40 years from 30 years – six years before the ASN agreed to the move.

The utility, 85 percent-owned by the French government, said on Friday it would seek to raise 4 billion euros ($4.5 billion), amid concerns that a 23 billion euro nuclear plant project at Hinkley Point in Britain would put a strain on its finances.

(Reporting by Michel Rose; Editing by Toby Chopra and Hugh Lawson)

April 25, 2016 Posted by | France, safety | Leave a comment

EDF plan to help finance Hinkley nuclear project could be illegal

justiceflag-EULegal 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 | France, Legal, UK | Leave a comment

France’s nuclear corporation EDF warned on legal action over the Hinkley nuclear project debacle

text Hinkley cancelledPoster EDF menteurPressure rises on EDF board over Hinkley Point nuclear plant, FT.com, 19 Apr 16,  Michael Stothard in Paris  A group of managers at French utility EDF have sent a letter to its board of directors warning they could all face legal action if the company pushes ahead with its contentious Hinkley Point C nuclear project in the UK.

The letter, dated April 19 and seen by the Financial Times, said that if a board decision in favour of Hinkley Point led to the “destruction of the value” at EDF its directors could be held personally responsible……….

French president François Hollande is also meeting ministers at the Élysée Palace on Wednesday to discuss financing options for Hinkley Point. The French state has an 85 per cent stake in EDF.

The letter by the group of EDF managers highlights the internal battle that has raged within the company over Hinkley Point, with chief financial officer Thomas Piquemal resigning last month because of concerns that the UK project could threaten the company’s future…….

Two other nuclear projects in France and Finland using the same reactor technology proposed for Hinkley Point are both severely delayed and billions over budget…….. http://www.ft.com/intl/cms/s/0/d6d16bd0-0628-11e6-9b51-0fb5e65703ce.html#axzz46IzsG72i

April 20, 2016 Posted by | France, Legal, politics, UK | Leave a comment