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Released December 05, 2013 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - The U.K.'s new nuclear build programme is to come under scrutiny from the European Commission (E.U.) which is planning to launch a formal investigation into the level of support the government has promised the project owner, French energy giant Electricite de France (EPA:EDF) (Paris).
Speaking at conference organised by the Union of the Electricity Industry (Eurelectric), European Union (E.U.) Competition Commissioner, Joaquin Almunia, said it was most likely that the Commission will look into the U.K. government's offer to EDF of a guaranteed power price over 35 years when the new Hinkley Point C nuclear plant is constructed. The key concern would be if that guaranteed rate broaches E.U. competition rules by distorting the market for electricity in the Union. The U.K. is the first country in the E.U. to offer a set price for a nuclear project over such a long period of time.
Answering a query about the 35-year guarantee, Almunia told reporters: "Two to three weeks ago we received notification from the U.K.. "We are starting to analyse what is in the British proposal. Probably we will open a formal investigation because many people are asking the same question as you do".
A formal investigation could delay the first new U.K. nuclear project in 20 years by a number of years. U.K. Energy Minister Michael Fallon, commented: "I have no reason to believe the commission will block it."
In October, EDF and the U.K. Government reached commercial agreement on the key terms of a proposed investment contract for the Hinkley Point C nuclear power station in Somerset. A final investment on the £16 billion ($25.8 billion) project was delayed throughout the year as they haggled over the price paid for power produced under the government's contracts for difference (CfD) scheme. The government has agreed to a 'strike price' of £89.50 per megawatt hour (MWh) if EDF's other planned nuclear project at Sizewell C goes ahead. If not, the Hinkley Point C strike point will be £3/MWh higher at £92.50/MWh. For additional information, see October 21, 2013, article - First New U.K. Nuclear Project Moves Forward.
The 3,300-megawatt (MW) Hinkley Point C nuclear power plant will use two European Pressurised Reactors (EPRs), which will be capable of generating enough power for around 5 million homes - around 7% of the U.K.'s total electricity demand - when they are commissioned in 2018. The project will be overseen by Nuclear New Build (NNB) Generation Company (NNB GenCo), which was formed by EDF.
View Project Report - 300009866
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
Speaking at conference organised by the Union of the Electricity Industry (Eurelectric), European Union (E.U.) Competition Commissioner, Joaquin Almunia, said it was most likely that the Commission will look into the U.K. government's offer to EDF of a guaranteed power price over 35 years when the new Hinkley Point C nuclear plant is constructed. The key concern would be if that guaranteed rate broaches E.U. competition rules by distorting the market for electricity in the Union. The U.K. is the first country in the E.U. to offer a set price for a nuclear project over such a long period of time.
Answering a query about the 35-year guarantee, Almunia told reporters: "Two to three weeks ago we received notification from the U.K.. "We are starting to analyse what is in the British proposal. Probably we will open a formal investigation because many people are asking the same question as you do".
A formal investigation could delay the first new U.K. nuclear project in 20 years by a number of years. U.K. Energy Minister Michael Fallon, commented: "I have no reason to believe the commission will block it."
In October, EDF and the U.K. Government reached commercial agreement on the key terms of a proposed investment contract for the Hinkley Point C nuclear power station in Somerset. A final investment on the £16 billion ($25.8 billion) project was delayed throughout the year as they haggled over the price paid for power produced under the government's contracts for difference (CfD) scheme. The government has agreed to a 'strike price' of £89.50 per megawatt hour (MWh) if EDF's other planned nuclear project at Sizewell C goes ahead. If not, the Hinkley Point C strike point will be £3/MWh higher at £92.50/MWh. For additional information, see October 21, 2013, article - First New U.K. Nuclear Project Moves Forward.
The 3,300-megawatt (MW) Hinkley Point C nuclear power plant will use two European Pressurised Reactors (EPRs), which will be capable of generating enough power for around 5 million homes - around 7% of the U.K.'s total electricity demand - when they are commissioned in 2018. The project will be overseen by Nuclear New Build (NNB) Generation Company (NNB GenCo), which was formed by EDF.
View Project Report - 300009866
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
