THE European Commission has published its report backing the £17.6billion subsidy deal for Hinkley Point C - but a legal challenge could yet delay work on Somerset's third nuclear power plant.

The Commission had been investigating whether the terms of the subsidy deal, struck between the Government and energy giant EDF, constituted illegal state aid.

Back in October, the Commission ruled in favour of the deal and has now published the decision on its website.

A spokesman for the Department of Energy and Climate Change, said: “Hinkley Point C will power nearly six million homes and replace old, polluting power plants; creating more than 25,000 jobs as we build a skilled, low-carbon future.

“The Commission's decision is an important step on the road to Britain's first new nuclear power station in a generation, and a boost to our efforts to ensure we have secure, affordable low carbon electricity in the 2020s.”

However, the Austrian Government has announced its intention to challenge the Commission's decision.

It expects to launch an appeal by April, which could delay a final investment decision by the UK Government for over two years because of the complexity of the case.

Stefan Pehringer, an advisor to the Austrian federal chancellory, told The Guardian: “The Austrian government has announced its readiness to appeal against the EC's decision concerning state aid for the Hinkley Point project, as it does not consider nuclear power to be a sustainable form of technology - neither in environmental nor in economic terms.”

EDF said it would not comment on Austria's challenge but the DECC spokesman added: “The UK is confident that the State aid case for Hinkley Point C is legally robust and we will vigorously support the European Commission in defence of its decision last year.

“This brings us one step closer to seeing new nuclear as part of our future low carbon energy mix.

“We have no reason to believe that Austria, or any other party, is preparing a case which has any merit.”

A spokesperson for Stop Hinkley said: “Should Austria win this legal action, we foresee considerable benefits to the local community.

“If Hinkley C goes ahead it would be the most expensive project of any kind ever built, yet it is not what is needed.

“We need renewable energy sources that aren't going to damage our climate.”