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Shadow energy minister Tom Greatrex has called on the National Audit Office to review the subsidy arrangement for EDF Energy’s Hinkley Point new nuclear project.
The funding deal, planned through the government’s Contracts for Difference (CfD) scheme, was approved last week by the European Commission which found that the plans comply with European Union state aid rules.
However, the opposition party is understood to have raised concerns that the deal may not be in the best interest of UK consumers, who will meet the cost of guaranteeing a revenue for the project.
The Times reports that Greatrex has written to the National Audit Office to ask for a review of the scheme in order to ensure that consumers get the “best possible deal”.
Following the announcement last week that the deal has been approved by the Commission, Greatrex said in a statement that value for the consumer, as well as transparency and accountability, are important principles.
“We will hold the government to account on the assurances they gave while the Energy Act was going through Parliament that new nuclear deals will be subject to thorough scrutiny to ensure value for money,” he said.
Investment analysts at RBC Capital said in an investment note this morning that the move from Labour may represent pre-election political posturing more than genuine concern.
“Given that new nuclear in the UK was promoted with cross-party support, this strikes us as a case of political nit-picking,” RBC Capital said.
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