The Chancellor George Osborne has personally written to the board of French energy giant EDF to express his commitment to the UK’s nuclear programme.The letter was in part intended to further negotiations with EDF over the proposed £14bn nuclear plant at Hinkley Point in Somerset.
The Sunday Telegraph understands that the purpose of the letter was to tell the company, led by chairman Henri Proglio, that the proposed Hinkley Point C reactor would be eligible for £10bn of financing guarantees.
The Chancellor’s intervention is said to have been well received by EDF, which had previously been frustrated by what it felt was an unreasonably tough negotiating stance adopted by the Treasury.
The guarantees scheme is key to the future of the project, and will see the Government act as guarantor if EDF were unable to repay its loans, thereby helping reduce risk for creditors, making them more willing to lend money to the project.
EDF remains locked in talks about the so-called “strike price” for electricity that the plant will generate, which will be guaranteed for more than 30 years.Whitehall is thought to be awaiting the next move from EDF. Both sides have described talks as “positive” but an agreement is understood to still be several weeks away. However confirmation of the strike price will not be enough to complete the deal. EDF will also need to attract partners to take up to a 49pc stake in the project.
Energy minister Michael Fallon held talks last month with China Guangdong Nuclear Power Group, which has long been seen as a likely partner for EDF.
Ministers hope that China Guangdong will not only come in as a minority partner for the project but may also in future lead the construction of further UK reactors itself.
No comments:
Post a Comment