Price for energy crucial as Hinkley C deadline draws near

Price for energy crucial as Hinkley C deadline draws near Price for energy crucial as Hinkley C deadline draws near

EDF Energy says getting a decent price from the Government for its electricity remains the last piece of the jigsaw to ensure that Hinkley C goes ahead.

The firm remained tight-lipped this week about national media reports that it has asked the Treasury to underwrite its new nuclear project following the withdrawal of a major backer, Centrica.

However, EDF referred to previous comments from its chief executive, Vincent de Rivaz, on talks with the Government on the Contract for Difference – a guaranteed price the firm will receive for its energy throughout the lifetime of its nuclear power stations.

Mr de Rivaz said: “This Contract for Difference is now more than ever the key to attracting investors and to unlock the funding for this project, which will give the UK the secure, low carbon energy it needs for the future.”

The Mercury understands the CFD is unlikely to be agreed before March 19, the cut-off point by which time Energy Secretary Ed Davey will have announced whether or not Hinkley C has planning approval.

A Treasury spokesman declined to comment on any negotiations with EDF, but did say the Government’s UK Guarantee Scheme, launched last year, was available to help kick-start major infrastructure projects.

Meanwhile, Sedgemoor District Council has written to organisations in Somerset which will play a part in the construction of Hinkley C.

Council leader Duncan McGinty said: “We are keen that if the go-ahead is given we can get on with it as soon as possible and ensure there are no delays or blockages preventing this vitally important project from being finished on time.”

Comments(12)

Jon Alsbury says...
12:06pm Mon 18 Feb 13

unsafe, uneconomical, and unwanted here!

smithy99 says...
1:57pm Mon 18 Feb 13

Jon Alsbury wrote:
unsafe, uneconomical, and unwanted here!
Hinkley Point has been here for years so saying things like 'unwanted here' is a little ridiculous as it has been here for years. They are adding to and extending the reactors.
There are many Nuclear Power stations over the UK and we would all be in serious trouble if any one of them had a disaster (not solely Hinkley Point) the argument for 'not being safe here' does not stack up, we are a small island. Nuclear power is one of the cheapest fuel production methods but is generally frowned upon because of the Nuclear Waste issues and concerns over radiation if a disaster was to happen, but we already have numerous stations in the UK so adding to Hinkley will make no difference to this. Take Nuclear out of the equation and consumer bills would be treble of what they are today. I DON'T WORK FOR THE INDUSTRY BY THE WAY.

Ka7e says...
4:29pm Mon 18 Feb 13

So French-owned EDF not only want the UK government to underwrite their expansion, they also want a guaranteed price for their product?

Old Phucker says...
9:26pm Mon 18 Feb 13

So EDF wants a guaranteed price for its electricity for the lifetime of the new power station?. If new energy sources are developed, possibly less costly, and new discoveries allow cheap and limitless energy generation, what does our Government do then?. Guess they"ll be phucked. Cold Fusion, a potential energy source of the near future, is still on the horizon, check it out, seems to be meriting a new lappraisal,and fresh credibility.

BaldCarl2 says...
10:56pm Mon 18 Feb 13

Ka7e wrote:
So French-owned EDF not only want the UK government to underwrite their expansion, they also want a guaranteed price for their product?
Smithy99 - what this actually does is to guarantee nuclear energy as very expensive and not the cheapest as you mistakenly believe.

The UK government cannot afford to build a power station. EDF thought they could until nuclear reactors started exploding in Japan a couple of years ago.

Put nuclear in the equation and consumer bills will be treble what they are today. I DON'T WORK FOR THE INDUSTRY BY THE WAY

greycatz-2 says...
11:12pm Mon 18 Feb 13

We know deep down that the british tax payer is going to pay for the new power station one way or the other.Thank you EDF but your work here is done, time to hand over to the british government.Its this kind of project that needs to be built to pull this country back off it's knees and also to allow us to continue to live in the kind of high tech world we live in.Infrastructure of this nature should only ever be owned by the state for the states benefit not that of another state.

Old Phucker says...
9:37am Tue 19 Feb 13

greycatz-2 wrote:
We know deep down that the british tax payer is going to pay for the new power station one way or the other.Thank you EDF but your work here is done, time to hand over to the british government.Its this kind of project that needs to be built to pull this country back off it's knees and also to allow us to continue to live in the kind of high tech world we live in.Infrastructure of this nature should only ever be owned by the state for the states benefit not that of another state.
Agreed.

Cyborgigy says...
4:21pm Tue 19 Feb 13

So. To summarise.

EDF who is owned by the French government, want the UK government to guarantee that they, the French government, will always profit from British consumers, and ALL profits going to the French government. Meanwhile they also want the British government to pay the £70Billion to store and clean the waste and BTW, can you keep this dangerous nuclear waste in Britain please.

Sounds fair. If you are the French Government.

Why don't they just build it in Northern France and the Uk import the electric. Oh, I forgot, they tried that and its 3 years late, 200% over budget, and condemned by the EU safety inspector.....

Bridgy old Boy says...
5:28pm Tue 19 Feb 13

It always amuses me when opponents of Wind power and other renewables like our dear MP claim that it is uneconomic and requires public subsidy to work. But they then sit on their hands and remain silent when there is a suggestion that nuclear power can only be delivered with a help of a huge public subsidy over 40 years. Let us get real Nuclear cannot be delivered without the type of eye watering public public money that no other form of energy would get away with.

BaldCarl2 says...
7:57pm Tue 19 Feb 13

....and don't forget the billions in decommissioning costs the UK taxpayer will have to shoulder once it has stopped producing energy.

Only me 123! says...
10:29am Wed 20 Feb 13

Jon Alsbury wrote:
unsafe, uneconomical, and unwanted here!
Unwanted by whom? You perhaps.EDF is not & never will be a charity, so for those of you who are surprised EDF are in discussion with the government over the price they will receive are naive to say the least, and on a cheerier note just wait until the lights start to go out, as they will, if a reliable form of generation isn't put in place soon.

awayswing says...
9:26am Thu 21 Feb 13

Only me 123! wrote:
Jon Alsbury wrote:
unsafe, uneconomical, and unwanted here!
Unwanted by whom? You perhaps.EDF is not & never will be a charity, so for those of you who are surprised EDF are in discussion with the government over the price they will receive are naive to say the least, and on a cheerier note just wait until the lights start to go out, as they will, if a reliable form of generation isn't put in place soon.
Reliability is important but if people cannot afford to pay the bill the lights will be out anyway,at which,no doubt,the price to the consumer will go up again because of lack of use.One of the main reasons the government were pushing nuclear generation was that it would not be subsidised.Another promise broken.

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