EDF delays Hinkley decision amid new worries over finances

The French energy group EDF has postponed giving final approval to the construction of a new £18bn nuclear power plant at Hinkley Point. The final decision to proceed was expected at an EDF meeting on Wednesday this week but according to sources close to the project, the item had been taken off the agenda because of concerns expressed by some of the company’s most important backers.

The Financial Times has reported that there are "serious concerns" among private investors over how the project will be financed. French newspaper Les Echos said that EDF was putting pressure on the French government, which owns 85 per cent of the company, to help find new financing. 

The delay to such a key energy project is certain to worry many in the industry as EDF’s decision on Hinkley was set to sound the starting gun on a major acceleration of activity as one of the largest infrastructure projects in Europe gets off the ground.

In recent weeks however, concerns have grown in France that EDF might struggle to meet the costs of building the plant, and worries have also been expressed at potential penalties levied by the UK government if the project is late. The French trade union CFE-CGC, which has a seat on the EDF board, is apparently concerned about the financial risks of Hinkley and they fear that involvement in the project could pose a long term threat to EDF.

All this has meant that there are significant concerns within EDF that the Hinkley project is too risky and too expensive.

The next chance for the Hinkley decision to be made could be when the EDF board next meets on 16 February, though the company has not confirmed whether that would happen. The financing of the project has always been complex and challenging, but this latest problem at such a very late stage in the process is sure to further fuel industry worries over when the project will finally begin construction.

Meanwhile EDF chief executive, Jean Bernard Lévy, has twice within the past week reiterated his belief that the company is ready to proceed with Hinkley Point.

The delay came as Sellafield announceds the winning consortia for a £500m 10-year agreement to support the organisations own staff on the decommissioning of Europe’s most complex nuclear site.New deals were framed to bring big benefits to the community with all firms committed to training and spending at least 20% of their subcontracting budget with small to medium-sized firms.

The four teams are: 

Integrated Decommissioning Solutions: Energy Solutions EU, Hertel (UK), North West Projects and Westlakes Engineering

Nexus Decommissioning Alliance: Costain Oil, Gas and Process

Cumbria Nuclear Solutions: Shepley Engineers, James Fisher Nuclear, REACT Engineering, Jacobs Stobbarts, Westinghouse Electric Company UK, WYG Engineering

The Decommissioning Alliance: Jacobs UK, Energy Solutions EU, Westinghouse Electric Company