by Staff Writers
London (Sputnik) May 26, 2016
French electric company EDF has no fixed date for a final investment decision on the delayed construction of Hinkley Point atomic power plant in England, the chief of its UK subsidiary said. UK media reports initially gave EDF until early May to announce the size of the funds that UK's EDF Energy would invest, but its chief executive said the final decision would be made after EDF's 60-day period of consultations had run its course.
"I don't want to prejudge the outcome of the consultation the sooner we have the final investment decision the better," EDF Energy chief executive Vincent de Rivaz Energy said, as quoted by the BBC.
De Rivaz appeared before the UK parliament's Energy and Climate Change Committee for the second time in less than three months to explain the delays to the project that aims to build UK's first new nuclear power plant in a generation.
European Nuclear Plans in Jeopardy as Finance Chief Quits EDF
EDF Energy in the UK has been planning to build a new nuclear station at Hinkley Point in Somerset, in the south west of England, for several years. Despite the British Government agreeing a 'strike price' with EDF Energy in the UK, which guarantees EDF a price of US$141 MWh for generating electricity over 35 years and a debt guarantee, the final investment decision has still not been taken.
The issue was discussed between UK Prime Minister David Cameron and French President Francois Hollande at their meeting in Amiens, north France last week. Although Chinese backers have signed up to fund two thirds of the Hinkley Point project, EDF is struggling to fund the remaining third, following the state bailout of Areva, which manufactures the nuclear reactor.
The project has suffered further delays because of problems at two other sites where nuclear stations based on a similar design to Hinkley are being built. The CEO of EDF, Jean-Bernard Levy, in September announced a further postponement of the commissioning of the gigantic new nuclear power station at Flamanville in northern France and admitted the price has more than tripled.
Levy said the first French third-generation European Pressurized Water reactor (EPR) with a capacity of 1650 MW will cost in the region of US$12 billion - more than three times the original projected cost of US$3.37 billion and fuel loading will not even start until late 2018, six years behind schedule.
In 2015, EDF's construction partner, Areva, announced huge losses and the French Government is attempting a rescue plan that will include a bailout from EDF. This is turn has had a knock-on to Hinkley, where - despite China General Nuclear Power Corporation (CGN) agreeing to pay a third of the cost of the US$25,5 billion ( Pounds 18bn) project in exchange for a 33.5percent. stake - EDF is said to be having trouble raising its 66.5 percent of the cost.
In its 2015 Annual Results presentation in early February, EDF Energy said:
"Hinkley Point C is a strong project which is fully ready for a final investment decision and successful construction. Final steps are well in hand to enable the full construction phase to be launched very soon."
However, analysts say the repeated postponement of the final investment decision is a sign the company is nervous about making the commitment. The resignation of EDF's finance chief is further evidence that the company's ability to fund the new UK power plant is a huge risk. Sources close to the company says it is likely to ask the UK Government to delay the building of the new plant until EDF's financial position improves.
Source: Sputnik News
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