Latest Public Sector News

21.10.13

Hinkley nuclear power plant plans confirmed

A consortium led by EDF Energy will build the Hinkley Point C nuclear power plant in Somerset, the Government has announced.

The contract guarantees the group £92.50 for every megawatt hour of energy the plant generates, which is almost twice the current cost of electricity. This will drop to £89.50 if the group goes ahead with plans for another new power station in Suffolk.

Two new reactors will cost an estimated £16bn to build and will provide power for around 60 years. Around 25,000 jobs will be needed during construction and 900 permanently during operation, but the Government says it has extracted guarantees that mean a substantial amount of the workers and companies involved will be British.

The existing Hinkley plant currently provides 1% of the UK’s total energy, and is expected to provide 7% once the expansion is complete in 2023.

Energy secretary Ed Davey said: “For the first time, a nuclear station in this country will not have been built with money from the British taxpayer. While consumers won't pay anything up front, they'll share directly in any gains made from the project coming in under budget.”

Prime minister David Cameron said: “This underlines the confidence there is in Britain and makes clear that we are very much open for business.”

EDF is majority-owned by the French government, while substantial investment is also coming from a company wholly-owned by the Chinese state.

Tell us what you think – have your say below, or email us directly at opinion@publicsectorexecutive.com

(Construction image copyright EDF)

hinkley second image

Comments

British Bobbles   21/10/2013 at 12:46

Thank God, at long last we have a Government that has got off the fence regarding nuclear power. Just need another 10 or so stations to provide the UK with self-sustainable power for future generations. Much prefer this than being held to possible future ransom from overseas suppliers. The price for power generation looks high in this present climate, but by the time these stations come on-line and producing, prices for gas and electricity will no doubt be up in that price range anyway!

Rod B   21/10/2013 at 12:57

So the cost to the consumer is about to double in the next 5 years to fund the cost of new nuclear power stations? Can we afford 15% annual increases every year? I know I can't. "Gains from the project coming in under budget" ?? Maybe on your planet Mr Davey...

C Hinkley   21/10/2013 at 13:51

I am a Carina Hinkley and I find this powerplant highly offensive.

Max Gareth   21/10/2013 at 14:16

At long last we have a govt that is looking to the future to provide for future generations.it is also not costing the tax payer, but be provided by private enterprise.

Don't Nuke Our Energy Supply.   23/10/2013 at 14:06

'provide the UK with self-sustainable power for future generations. Much prefer this than being held to possible future ransom from overseas suppliers.' British Bobbles, all uranium mines are overseas and now the power stations will be owned overseas (but we know the waste will stay here). Hardly 'self-sustainable'! This is just a dangrous and desperate PFI with a sting in the tail.

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