Partly Cloudy

Partly Cloudy

max temp: 5°C

min temp: 3°C

ESTD 1874 Search

Sizewell: EU probe into deal for new nuclear payments

07:45 05 February 2014

The proposed project to build Sizewell C

The proposed project to build Sizewell C

Archant

A deal worked out in an attempt to kick-start the UK’s new nuclear programme – including Sizewell C – may distort the electricity market, according to a scathing European Commission report.

The 68-page document threatens to derail plans for a nuclear renaissance because it suggests that a financial deal between EDF Energy and the government – known as a Contract for Difference (CFD) – may contravene state aid regulations aimed at preventing unfair subsidies in the European energy market.

It also suggests that the agreement does not represent particularly good value for money.

The EC has ordered a month-long investigation into last year’s deal between EDF and the government to guarantee a £92.50 payment – known as a “strike price” – for each megawatt hour of electricity generated by the first of the planned new nuclear plants, at Hinkley Point in Somerset, over its projected operating lifetime of 35 years.

A similar agreement was reached for Sizewell C, with an £89.50 per megawatt hour strike price.

Both deals involve payments well in excess of the current price in Europe, but the government and EDF claim that, as energy costs rise, they will prove good value over the 35-year reactor lifetimes.

The report says: “The commission has doubts on the structure of the CFD for nuclear which, by its design, duration and scope, has the potential for distorting competitive conditions.”

It also casts doubt on whether the aid measures are proportional to the potential benefits.

An EDF spokesman said the investigation would allow the firm and the government to show that market reform was essential “in order to give the UK the secure, low carbon electricity it needs for the future”.

The Department for Energy and Climate Change said it would show that the project meets state aid rules, will cut carbon and improve energy security in a way that is good value for money.

5 comments

  • @ Roy Everett..the 'price' does not matter when we have already been 'sold' down the river of privatisation !, I just hope if there is ever a third world war they do not expect me to defend every thing they (through their shares) own !, because I will tell them what they need to do ! STICK IT where it will do most good !!

    Report this comment

    freedomf

    Wednesday, February 5, 2014

  • You have over-stated the strike price by a factor of 1000. You should have put "megawatt-hour" rather than "kilowatt-hour".

    Report this comment

    Roy Everett

    Wednesday, February 5, 2014

  • This story just illustrates why we need to leave the EU, we should be free to trade freely and fairly with whom ever we want in the world, not be tied into some 'restrictive practice' !, the EU has already proved to be UN economic, if banks or countries have to be 'bailed out' !, they have FAILED !, lets get back into the real world !

    Report this comment

    freedomf

    Wednesday, February 5, 2014

  • You have over-stated the strike price by a factor of 1000. You should have put "megawatt-hour" rather than "kilowatt-hour". I

    Report this comment

    Roy Everett

    Wednesday, February 5, 2014

  • Don't worry about the British 'Consumer' !, we are just 'Cash Cows' waiting to be milked by our 'own' so called government !! The way things are going with the tories, it will not be long before we are back in the 'Lord of the Manor' and 'Serfdom' days !!

    Report this comment

    freedomf

    Wednesday, February 5, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Stock image.

A BMW was involved in a single-vehicle crash in Suffolk on Saturday night.

Inflatable 5k Santa Run at Trinity Park in Ipswich, December 2016.

Delivering millions of presents around the world in a single night won’t seem as strenuous this Christmas for Santa after he completed a gruelling obstacle course in Ipswich.

A120 at Marks Tey

A young man was killed during a crash between a car and a lorry in Essex this morning.

Scene of fire on Stanford Street, Lowestoft.
Picture: ANTONY KELLY

A man has died in a flat fire, despite the desperate efforts of brave neighbours to carry out a rescue.

The RSPCA centre in Martlesham is appealing to animal lovers to consider adopting a new pet

The RSPCA are appealing for animal lovers to come forward and adopt some of the cute creatures they are looking to rehome.

St John's Church, Felixstowe. The Victorian Christmas Market. 
Kay and Debbie, stallholders with handmade stationery, jewellery & accessories.
Photo by:Gill Atacocugu.

Eagle-eyed shoppers have spent the day looking for the ideal gift at a Christmas market at a church in Felixstowe.

Partners Barbara Grace and Alan Sarfas are threatening to dismantle their beach hut and rebuild it outside Suffolk Coastal HQ if plans go ahead for a rates rise they say is unaffordable.

“We won’t let this happen without making a lot of noise”.

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View

Most commented

HOT JOBS

Show Job Lists

Streetlife

Newsletter Sign Up

Sign up to the following newsletters:

MyDate24 MyPhotos24