The vast costs that just don’t add up

GEORGE Osborne’s deal was said to have been doomed from the start. Here are the reasons why:

In 2012 the Government promised EDF £92.50 per megawatt hour. This is promised for 35 years from 2025, index-linked, which experts warn could add over a billion a year to energy bills

If the project is delayed, Britain still has to pay the premium price

The rate is now nearly triple the average wholesale cost of electricity, because of cheaper oil, gas and renewable energy prices

If the market price of electricity falls below this level, the Government has in effect said it will make sure EDF receives the difference between the two – which could amount to billions

The deal contains a ‘poison pill’ which could leave taxpayers with a £22billion bill if a future UK government closed the plant before 2060

Britain is committed to pay subsidies of up to about £40billion in real terms and provide guarantees on nuclear waste disposal and insurance

A loan guarantee means if the plant defaults, the Government will repay the first £10billion to investors