West of England business leaders have called on the Government to make a speedy decision and approve the new Hinkley Point C nuclear power station after it forced another delay of the £18bn project at the 11th hour last week.
The plans were thrown into chaos by the Government last Thursday just hours after being given the go-ahead by French energy giant EDF.
Ministers will now conduct another review of the controversial project and report later this year with some sources claiming Prime Minister Theresa May has concerns over the security implications of the Chinese investment in the plant.
The move stunned the energy industry and caught many of those close to the project off guard. Plans for VIPs to visit the site in Somerset on Friday and for a series of contract signings were abruptly cancelled.
Phil Smith, managing director of Business West - the organisation behind Bristol Chamber of Commerce – said: “The unexpected announcement by the Government that it wants to review the detail further before giving the green light has caused frustration for the many businesses that have been awaiting the final investment decision from EDF.
“It is important that the Prime Minister makes a decision quickly to restore confidence and avoid any long-term uncertainty. Post Brexit, we need to send a strong message to the world that we are open for business.
“This is a great infrastructure project, the like of which the South West needs if we are to continue to create confidence in business in this region.”
Matt Burley, chair of Nuclear South West – the organisation bringing together firms in the nuclear sector with academics and other businesses to maximise opportunities linked to Hinkley Point C – added: “After the great news received last night following EDF’s historic board decision, it was indeed a disappointment to hear about further unexpected delays.
“Nuclear South West remains delighted that EDF has approved the financial mechanisms to allow the Hinkley Point C project to go ahead.
“We are optimistic that the Government will make a speedy decision allowing the region and the country to press ahead with this once-in-a-lifetime opportunity to secure low carbon energy supply for decades to come, while growing a vibrant supply chain and highly skilled workforce for the future.”
EDF’s long-delayed approval of the project – the UK’s first new nuclear power station for a generation – last Thursday had been widely welcomed in the West of England, which would have received a multi-million pound economic boost.
It would be the single biggest development project in a generation, triggering an estimated £50bn worth of contracts for local firms over the next two decades as well as making the region a centre of excellence for the nuclear industry.
Some 25,000 jobs would be created, with at least 5,000 people from Somerset expected to work directly on the project, providing a £40m boost to the local economy every year.
But two hours after EDF’s announcement, the Government delayed the project yet again.
In a statement, Business, Energy and Industrial Strategy Secretary Greg Clark said: “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.”
Industry experts and West business leaders were baffled at the Government’s 11th hour move as the deal has effectively been ready for approval by EDF for three years.
Bosses from Chinese state-owned China General Nuclear Power Corporation (CGN), which is paying EDF Energy £6bn for a one-third stake in Hinkley C, had expected to sign the contracts on Friday but were said to have returned to China immediately following the Government’s announcement.
The new plant, which would be built alongside the existing Hinkley nuclear plants on the Somerset coast near Bridgwater, has already been rocked by controversy over its cost and claims that money would be better used in renewable energy sources.
Ahead of last Thursday’s EDF board meeting one of its directors, Gérard Magnin, resigned, calling the project “very risky”. His resignation followed that of EDF chief financial official Thomas Piquemal earlier this year over the cost.
Greenpeace described the plant as a “radioactive white elephant” and said it was terrible value for money.
The Government’s finance watchdog the National Audit Office has also slammed the project and warned that taxpayers could end up footing a £30bn bill for subsidies to it.
The Government has agreed a strike price – a guaranteed price for the electricity generated by Hinkley Point – of £92.50 a megawatt hour for 35 years – more than twice the current wholesale cost.
The new plant would provide 7% of the UK’s electricity over its estimated 60-year lifespan and was scheduled to go online in 2025 – several years later than planned.
