France to back EDF over Hinkley Point

The French government has agreed to give financial support to EDF Energy to allow the Company to press ahead with plans to build the £18Bn nuclear power plant at Hinkley Point in Somerset.

France own an 84% stake in the energy giant and the government are keen for the Company to press ahead with the project despite the increasing concerns over its cost that reportedly led to EDF’s finance chief to quit.

EDF Chief Executive, Jean-Bernard Lévy, last week wrote to EDF staff insisting that the Company would not go ahead with Hinkley Point unless financial support was received from the French government.

The news will be welcomed by the British government who will be relying on Hinkley Point C to deliver its low carbon energy plans.

French Economy Minister Emmanuel Macron said during a visit to: “If there is a need to recapitalise, we will. If there needs to be a further waiver of dividends, we will.

“If you believe in nuclear, you cannot say that you will not participate in the biggest nuclear project in the world. Not doing Hinkley Point would be a mistake.”

EDF’s net debt is currently over €37Bn as the company has had to borrow heavily as it pushes forward with heavy investments. It is thought that the company will need a further €5Bn to meet its cashflow requirements over the next three years.

Next week, EDF and other energy companies planning to build reactors in the UK have been called to Parliament by the UK’s Energy and Climate Change Committee to give evidence on the future of the nuclear industry.

Chair the Committee, Angus MacNeil said: “The government is counting on new nuclear to supply a significant proportion of the UK’s demand for low-carbon baseload power in future.

“The focus right now is on Hinkley Point C but there are other important projects in the pipeline. Serious questions are being raised about the cost and viability of the Hinkley project and the value for money for taxpayers.”

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