French energy giant EDF takes £11bn hit on Hinkley nuclear plant

EDF, the French state-owned power giant, has been forced to write off €12.9bn (£11bn) over its investment in Hinkley Point C nuclear power station.

Luc Rémont, the chief executive, said yesterday that EDF was in talks with the British Government over the “longterm financing” of Hinkley, and the planned Sizewell C project.

“We’re obviously having talks with the British Government on both projects,” he said.

The writedown comes amid a row between Britain and France over who should pay for the ballooning cost of the power plant which is currently under construction in Somerset.

Last month EDF revealed that Hinkley is likely to be delayed until 2029 or even 2031, and the price could hit as much as £46bn in today’s money. That compares with the initial budget of £18bn and a scheduled opening in 2025.

Despite the writedown, EDF posted a

‘We’re obviously having talks with British ministers on both projects’

€10bn profit for last year, compared with a €17.9bn loss a year earlier after several reactors had to be shut for repairs.

EDF has said many of the extra costs associated with Hinkley were caused by the Government insisting on expensive extra safety measures after the 2011 Fukushima nuclear disaster.

Such issues have led to new tensions with the French government whose finance minister Bruno Le Maire has told Claire Coutinho, the UK energy secretary, that Britain will have to stump up extra cash for the project. Britain insists EDF must pay.

The Hinkley contracts put the onus on EDF to complete construction without any UK bailouts. However, Britain is also relying on EDF to build the planned Sizewell C reactor in Suffolk, adding an extra dimension to negotiations.

Chris O’Shea, Centrica chief executive, which has a 20pc minority stake in EDF’s UK nuclear operations, on Thursday confirmed that his company is discussing co-financing Sizewell C.