Hinkley: new deal looms over the cost of electricity
THE Government could renegotiate the controversial electricity price deal for the proposed new nuclear plant at Hinkley Point in Somerset if it takes a stake in the project, say experts.
Reports this weekend suggest it is preparing to step in with a £6billion payment to support the scheme, replacing a contentious investment in the plan by a Chinese nuclear group. A £6billion taxpayer investment could also prompt a renegotiation of the hotly disputed price.
The current plan, with French group EDF building the new Hinkley plant, guarantees the owners would be paid at least £92.50 per Megawatt hour for electricity produced, far above the current wholesale price.
A senior energy industry source said: ‘£6 billion is loose change to the Government, it would cut the capital expenditure by a third and it’s less of a risk for EDF.
‘That should bring the strike price down, which would be good news for consumers.’
Prime Minister Theresa May unexpectedly delayed the project after coming to office and is expected to make a decision on whether to go ahead with the troubled plant later this month. She is in China this weekend for the G20 meeting of leading nations and will meet China’s President Xi Jinping for bilateral talks.