UK approves Hinkley Point C nuclear plant deal

Government gives go ahead for £18Bn Hinkley Point C in Somerset, after imposing “significant new safeguards” for future projects.

Hinkley Point C nuclear power station has been given the go ahead by the government, with the introduction of safeguards for foreign investment in future infrastructure projects.

Theresa May has now given the project the green light, following unexpected delays regarding the costing of the project, and more recently concerns from the Prime Minister over national security.

The controversial scheme in Somerset was put under review when Mrs May came into power.

The deal will see the major plant built by EDF, the French state company, with £6Bn of Chinese investment. In exchange, the agreement was made on the understanding that the UK government would approve a Chinese-led and designed project at Bradwell in Essex, which was what raised questions over national security.

Chinese investors have previously warned that the delay and uncertainty by Britain to halt their investment in the UK nuclear plant would put relations between the two countries at risk.

The government is keeping a guaranteed price of £92.50 to EDF for every megawatt hour of electricity generated, despite concerns that is far higher than the market rate.

Included in the new security restrictions, Greg Clark, the Business Secretary, has brought in a ban on EDF being able to sell its interest without UK government approval, and a new national security test for all foreign investment in critical infrastructure.

The government said it would now “impose a new legal framework for future foreign investment in Britain’s critical infrastructure”.

In a statement, the government said: “After Hinkley, the British Government will take a special share in all future nuclear new build projects. This will ensure that significant stakes cannot be sold without the Government’s knowledge or consent.”

It added: “There will be reforms to the government’s approach to the ownership and control of critical infrastructure to ensure that the full implications of foreign ownership are scrutinised for the purposes of national security.”

The decision means Hinkley will be the first new nuclear reactor built in Britain in two decades.

 

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