Hinkley Point decision delayed again

France committed to Hinkley Point but decision has been postponed for a further five months.

France is still committed to the £18Bn power station but no final investment decision will be made for five months, according to Emmanuel Macron.

The decision on the Hinckley Point nuclear power plant was previously expected to be made in March, but EDF has been struggling to find the cash for 66.5% of its remaining stake.

Last month, the company’s Chief Executive, Jean-Bernard Levy, said that the financial context was “challenging” and that he was negotiating with the French government to secure more funding.

A deal was agreed in October last year, where China General Nuclear Power Corporation (CGN) agreed to pay a third of the of the project in exchange for 33.5% stake.

EDF, which is 85% French state owned, on Friday detailed plans to raise €4bn.

Up to €3bn in the expected rights issue, which will allow shareholders to buy new shares in the firm, will be provided by the French government.

The new Hinkley Point nuclear power point could produce 7% of British electricity and create 25,000 jobs, according to EDF. The plant was due to start producing electricity in 2025, however the delays in an investment decision means this date is expected to slip.

Last month, the company’s Chief Executive, Jean-Bernard Levy, said that the financial context was “challenging” and that he was negotiating with the French government to secure more funding.

Any further delays put pressure on an already tight schedule to complete the two “new generation”, high-pressure water reactors at Hinkley by the middle of the next decade.

In September last year, the Chancellor George Osborne said Hinkley Point was a central part of the government’s strategy to “make sure the lights stay on”.

“The current generation of nuclear power stations are coming to the end of their life. That’s going to create a very big hole in our base electricity supply unless we do something about it,” he told a House of Lords committee.”

Thomas Piquemal resigned from his post of EDF Finance Director in March, after expressing fears that Hinkley could threaten the company’s future.

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