Hinkley power station at risk as funding doubts emerge

An EDF board meeting to decide whether to invest in Hinkley Point power station has been postponed

The opening of Hinkley point power station could be delayed following reports that an EDF board meeting to decide whether to invest in Hinkley Point power station has been postponed. 

The decision on whether EDF will invest in the Somerset power station was called into question by French trade union CFE-CGC. It issued 15 questions raising financial, legal and strategic concerns over whether EDF can afford the project, or deliver it on time. 

EDF had been scheduled to take the long-awaited decision at a board meeting on January 27, but is now thought unlikely to do so until its annual results on February 16 at the earliest. 

The company is reportedly still struggling to find the cash for its own stake in the project, as its finances come under pressure from falling wholesale power prices.

EDF declined to comment on the reports.

Doug Parr, Greenpeace chief scientist, said: “EDF and George Osborne might want us to think Hinkley is the newest and shiniest car in the showroom but they are selling us a clapped out old banger that has failed its MOT three times already. The three EDF reactors that already exist in Finland, France and China haven’t even proved they can work. They use the same technology planned for Hinkley, but all three have faced severe delays and spiralling costs. EDF’s managers and employees are completely bewildered as to what makes EDF and the British government so confident that they are willing to bet billions of pounds on fourth time lucky.”

In October, EDF agreed a deal with China General Nuclear Power Corporation (CGN) to pay a third of the cost of the £18bn project in exchange for a 33.5% stake.

Dr Jenifer Baxter, head of energy and environment at the Institution of Mechanical Engineers, responded to the decision from government to guarantee the Hinkley plant.

She said: “Although the financial costs of nuclear power seem high, with the upfront cost of Hinkley Point C over £16 billion, this power station will provide and modernise the diversification we so badly need in ensuring the UK’s lights stay on.