Partly Cloudy

Partly Cloudy

max temp: 12°C

min temp: 8°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


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.


  • @ 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


    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


    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


    Wednesday, February 5, 2014

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

Magistrates' Court in Ipswich

A disqualified motorist banned for a drink-drive related offence was caught driving again while nearly four-and-a-half times the limit within two hours of his conviction.

Gina Long

A Suffolk-based charity auction which has attracted bids from all over the world and raised more than £870,000 since its inception is aiming to break the £1million mark for national and local charities this year.

Stock photo - Clown pranksters have been spotted in suffolk this weekend

Suffolk police officers have been called to a clown sighting in Haughley, near Stowmarket this afternoon.

American tycoon Donald Trump

Fight or flight is fascinating, writes Ellen Widdup.

Police were called to the scene of an accident.

The A12 is now running smoothly after severe traffic delays earlier at Feering, Essex, caused by a two-car crash.

Suffolk Constabulary CCTV footage of Corrie McKeague

Some stores display a polite notice next to initial merchandise asking shoppers not to rearrange the items to create rude words.

Annual Apple Day at Holywells Park, on Saturday.Isabelle Lipscombe and Isabella Smart.

Hundreds of youngsters braved the cold October temperatures to celebrate all things autumn at the Holywells Park Apple Day.

Most read

Great Days Out


Click here to view
the Great Days Out


Most commented


Show Job Lists

Don't miss


Newsletter Sign Up

Sign up to the following newsletters:

MyDate24 MyPhotos24