On Wednesday, the European Commission approved the UK’s PS 5 Billion ($39.. 36 Billion) Nuclear Power Plant Project at Hinkley Point, Somerset. It is located near Bridgwater on the Bristol Channel coast in south-west England. To comply with EU rules on state aid, the UK government was forced to change its plans for subsidized construction and operation of the nuclear power station. The project was approved by a total of 16 Commissioners, more than the required fifteen. The UK government made significant changes to project financing terms to prevent any distortions in competition within the Single Market. According to the Commission, these modifications reduce British taxpayers’ contribution to the project. The UK government accepted a reduction in its subvention of L1 billion. The Hinkley Point Nuclear Power Station Project (Photo by EDF Energy). Joaquin Almunia was the Commission Vice President in Charge of Competition Policy. He stated that the UK’s measures for Hinkley Point have been substantially modified following the intervention of the Commission. This has reduced competition distortions in the Single Market. This will result in significant savings for UK taxpayers. After a careful investigation and on this basis, the Commission is able to conclude that support was compatible with EU state-aid rules.” UK includes nuclear energy in its future mix. According to EU Treaty legislation, member states are allowed to select their energy mix. The UK decided to add nuclear energy into its future energy mix. The Commission stated that when public money is used for support of companies, it’s the Commission’s responsibility to ensure this follows EU state aid rules. To ensure that the Hinkley Point operator of Hinkley Point’s nuclear power plant receives steady revenues over 35 years, the UK government will establish a price support. A State guarantee will be provided to the operator for any financial market debts it may seek to finance construction of the nuclear plant. According to the Commission, the UK authorities have shown that support will “redress a market failure” and dispelled the Commission’s original doubts. EDF Energy will build the nuclear power plant. This will be EDF Energy’s first nuclear power plant in almost two decades. EDF’s initial PS 5 billion estimate was much lower than the PS trillion. This includes inflation and interest costs over the 10 years it takes to construct the plant. EDF Energy is an entirely owned subsidiary of the French state-owned EDF SA. EDF Energy operates in electricity generation, as well as the sale and purchase of electricity and natural gas to homes and businesses throughout the United Kingdom. EDF has over 5.7 million customers and employs 13,158 employees. Virtual tour of the Hickley point nuclear power station. This walkthrough video by UK Government shows Hickley Point without sound.
PS24.5bn Hinkley Point nuclear plant receives EU green light
