Friday, 22 April 2016

EDF postpones Hinkley C decision until next year

A report in the Independent says that the EDF Board of Directors has agreed to undertake discussions with the company consultative council before taking a decision, a process which is likely to take a long time ie until next year. However this could well be a cover for the numerous problems facing the project, not least EDF's own parlous financial position and the fact that it needs the French Government to bail it out even without going ahead with the Hinkley C project.

There has been a game of 'pass the decision' to abandon a project that no independent financial consultant would come within a light year of recommending for the go-ahead. The French Government has been faced with what seems to many to be the ludicrous prospect of heavily subsidising a power station to supply the British with electricity. This is despite the fact that the British themselves have promised to pay EDF around £100 per MWh in current prices for 35 years with the British Treasury agreeing to guarantee a £17 billion loan for the project! It is not as if even such a project could be a 'loss leader' for the French. Two versions of the same (EPR) plant design have been spectacular construction disasters already in Finland and France. Various engineers and managers, company unions and employee shareholders have pleaded for the project to be abandoned or put in deep freeze, and last month the Chief Financial Officer of EDF resigned in protest at the apparent determination of the EDF leadership to proceed with the project.

Earlier today Greenpeace announced a legal opinion which said that the French Government would need to apply to the European Commission for state aid for the billions of euros of money that they would need to throw down a probable Hinkley black hole. The Commission consented to the British state aid request in 2013, but a further consent could not be taken for granted - indeed, under the circumstances it would seem a bizarre request. In any even such an application (if it was ever made) would take a year or more to be resolved.

Certainly many nuclear experts have, in any case, been scratching their heads wondering how on Earth EDF could take a 'final investment decision' before the results of the safety tests being conducted on dodgy-looking EPR reactor vessels by the French safety regulators, the ASN, were known (they will not be known until next year). The suspicion must be that the directors of EDF, the French Government and the British Government are just stringing out the death-knell of a project that they know is not going ahead in the hope that a different member of this troika than themselves will take the blame. Who knows, maybe the troika have decided that they can take the matter to the Commission in the hope that they will refuse the state aid request and everybody can blame the EU! - As often happens for decisions that other people do not want to take themselves!

Thanks to 'Bristolboy' for pointing out to me the Independent piece; See http://www.independent.co.uk/news/uk/18bn-hinkley-point-nuclear-power-station-plan-could-be-coming-to-a-grinding-halt-a6997131.html

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