Shares in EDF rose 11 percent on Friday in the wake of the decision to review the Hinkley Point C project.
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But just two hours after EDF made its announcement the Government issued a terse statement, with Business Secretary Greg Clark saying the government will “consider carefully” before backing it, and that any decision would be delayed until the autumn.
“There is no comment to make”.
British industry and government leaders were preparing to assemble at the Hinkley site as the EDF board announced its decision at 7pm last night.
The Hinkley Point C project is being led by EDF, but China is providing major financial support.
The government is trying to encourage business investments after the European Union referendum result so the delay on the Hinkley Point decision was seen as confusing to some.
The project had received enthusiastic support from May’s predecessor, David Cameron for the jobs the project would create and its potential to allow the United Kingdom to meet its carbon reduction goals. Government is absolutely right to ensure value for money for the public and we recognise it would’ve been hard to conduct a review before EDF’s approval, but now more than ever timely, transparent decision making is needed. “After years of procrastination”, he said, “what is required is decisive action not dithering and more delay”.
“We demand that the Hinkley Point deal is scrapped and the plans for a new generation of nuclear power plants are stopped”.
Just how big is the price tag on the U.K.’s first nuclear-power plant in 20 years?
Following approval of the scheme by French energy company EDF, which will construct the plant in Somerset, it was expected the government would agree the deal.
Hinkley Point C would feature two Areva-designed EPRs at 1650 MWe each, expected to operate for 60 years and to benefit from ratepayer-backed guaranteed price for electricity for the first 35 years.
Justin Bowden, the GMB union’s national secretary for energy, told the Press Association: “Theresa May’s decision to review the go-ahead on HPC is bewildering and bonkers”.
The British GMB union immediately denounced it as “unnecessary hesitation” putting 25,000 new jobs at risk.
The facility will replace the Hinkley Point B facility, due to be decommissioned in the next decade, Sky News reported.
“Given the UK is facing a 40-55% supply gap by 2025, the UK Government must put in place clear guidance for developing near and long term sustainable power generation that meets the needs of UK carbon targets, creates a good mix of low emission technologies and develops skills and economic growth in the sector”.
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The plan has come under fire from critics who warn of environmental damage, long-term escalating costs and foreign government investment, with a third of the sum coming from Chinese investors.
