25 Feb (NucNet): The European Commission (EC) has criticised the deal between the UK government and EDF Energy for proposed state aid for the construction and operation of Hinkley Point C, saying the arguments used in favour of aid are “doubtful” or “not supported” by information.
In a special report published today, NucNet examines the EC’s concerns and objections, which are detailed in a document made public at the end of January 2014.
In the document, which serves as official notification from the EC to the UK government of a full investigation into the UK-EDF Energy deal, the EC raises the issue of “overcompensation” as one of the main problems
The EC also argues that the level of compensation cannot be clearly defined because of the long time-period covered by the deal, the costs involved in the project, and uncertainties over the electricity price on which the compensation will be based.
The document follows an announcement in December 2013 that the EC was opening a full investigation into possible state aid for construction of the proposed Hinkley Point C nuclear power plant in Somerset.
When it announced the full investigation, the EC said its main concern was that EDF Energy, the beneficiary of the proposed aid, will receive a steady income for electricity produced by the station without taking into account the volatility of electricity prices. “We have reasonable doubts about the details of the deal,” said EU competition commissioner Joaquín Almunia.
The full report is online for NucNet members and subscribers:
http://www.nucnet.org/all-the-news/2014/02/25/the-ec-lays-out-its-objections-to-uk-government-hinkley-point-c-deal
