Emily Gosden reports that there is a very good prospect for a decision to build the first new nuclear plant finally being developed, Amber Rudd, the energy secretary has said. Ms. Rudd told MPs on Tuesday she believed it was essential that the project go ahead. The French energy giant originally hoped to take a final investment decision on the Somerset project by the end of 2012.
Protracted negotiations between EDF and Government over subsidies for Hinkley resulted in a headline deal in October 2013, but details are still being ironed out, while investments from Chinese nuclear partners are yet to be finalized and financial issues at reactor-maker Areva has caused further problems.
But Ms Rudd told MPs that this will be the first new nuclear plant in over 20 years so it is essential to me that we succeed in it. But, a legal challenge from Austria to the EU state aid approval for Hinkley subsidies, while very unwelcome, was not expected to affect the final investment decision being taken later this year, she said.
Ms. Rudd, who said value for money was her top priority in the department, rejected suggestions she was secretly having regrets about the subsidy terms agreed by the Coalition, which will see consumers on the hook to pay roughly double the current market price of power for 35 years, a price challenged by many economists.
Ms. Rudd suggested the price was worth it because nuclear was reliable, unlike renewables. She said that they have to have a secure base-load, so the people should not be surprised that they will be required to pay more for that for a while in order to ensure nuclear is part of the mix. The requirement for nuclear is absolute, she said. However, these newer nuclear plants are expected to come in more cheaply, she said.
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