Plans to build the UK’s first new nuclear plant in 20 years have suffered an unexpected delay after the government postponed a final decision on the Hinkley Point project until the early autumn.
French firm EDF, which is financing most of the £18 billion project, approved the funding at a board meeting yesterday.
The company’s board of directors gave the authorisation to ensure its full execution in the framework of the signature process of all the contracts and agreements necessary to build the two nuclear reactors at Hinkley Point C.
The decision meant that EDF would have signed contracts with the British government, EDF’s partner China General Nuclear Power Generation, and the main suppliers of the project today. However, business secretary Greg Clark has said the government would "consider carefully" the plans before backing them.
Clark added: “The UK needs a reliable and secure energy supply and the government believes that nuclear energy is an important part of the mix. The government will now consider carefully all the component parts of this project and make its decision in the early autumn.”
The government’s decision has been criticised by the unions.
Justin Bowden, the GMB union’s national secretary for energy, said: “Theresa May’s decision to review the go-ahead on HPC is bewildering and bonkers. After years of procrastination, what is required is decisive action not dithering and more delay.
“This unnecessary hesitation is putting finance for the project in doubt and 25,000 new jobs at risk immediately after Brexit. It is a gross error of judgment and must be reversed.
“The ramifications of this foolish delay are far wider than putting our energy needs in jeopardy — they will immediately call into question other major infrastructure projects coming down the line like HS2 and Heathrow/Gatwick expansion.”
Speaking before the decision, Unite national officer for energy Kevin Coyne said: “Any further delay or back sliding would hold back the economic boost and the accompanying creation of thousands of skilled jobs that this major infrastructure project will bring.
“Unite will be pressing the UK government to give Hinkley Point C the final green light and that it ensures the project makes maximum use of British-made materials, such as steel, so that the benefits flow into the blood stream of the wider UK economy."
Josh Hardie, CBI deputy director-general, said: “While it is understandable the government wants to get to grips with the details of the Hinkley contract, it must press ahead to finalise the deal as soon as possible.
“The UK is facing a major investment challenge to ensure a secure, low-carbon and affordable energy supply. It’s crucial that we see clear and timely decisions, and send a definite message that the UK is well and truly open for business.
“In particular, clarity is needed around the next Contracts for Difference auction and the post-2020 Levy Control Framework, to build investor confidence.”
However, this additional delay will be welcome news to many. Good Energy chief executive Juliet Davenport said: “Giving the go ahead to Hinkley C is a bad move. It will take at least a decade to build and leave our grandchildren an inheritance of high energy costs, hazardous waste, environmental damage, and a plant that needs complex and costly decommissioning. No wonder only 36% of the British public support nuclear, compared to a whopping 76% for renewables.
“The same future generations that will blame us for Hinkley, could instead thank us for a legacy of investment in renewables.
“The transition to renewables is inevitable and brimming with economic opportunity – the UK should embrace it and move forward with a clean, green energy plan.”
Environmental groups are also concerned about the plan. John Sauven, Greenpeace executive director, said: "Countless experts have warned that for British families this power station will be terrible value for money."
He added that EDF's decision to go ahead with the investment, "doesn't prove the UK is open for business post-Brexit - it just shows the Hinkley deal became too big to fail in the eyes of British and French politicians".
The campaign group added that more investment was needed for renewable energy such as offshore wind.