Davey prepared to walk away from EDF deal

The energy secretary has said he is prepared to walk away from negotiations with EDF over a strike price for new nuclear if he doesn't "get the right price".

The government and EDF are locked into tense negotiations over a potential contract for difference strike price for a new nuclear power plant at Hinkley Point C.

However speaking at a Centre Forum fringe event at the Liberal Democrat conference, Ed Davey reiterated his stance by saying “everybody knows” that he will abandon the deal if it does not represent a good deal.

He also talked up the government’s negotiating position: “EDF has got £1bn invested in Hinkley Point C already – already – before they’ve got a deal.

“They’ve got an interest in staying at the table. I can walk away from the table so I think the position we’ve got ourselves into with those negotiations is a strong position.”

Energy minister Michael Fallon, speaking at the World Nuclear Association Symposium in London on Tuesday, also stated that the UK is in a strong position, with the UK being on “the cusp of a new [nuclear] build renaissance”.

Fallon added: “The immediate priority is, rightly, getting the first project constructed,” before going on to say that “both sides remain committed to the negotiations and are keen to reach a deal”.

However, the energy minister also said that there is a “strong level of interest in the UK’s new nuclear build programme” with interest coming from Japan, America, Canada, Korea and Russia.

He added: “I want to emphasise that such interest from around the world can only be a good thing in ensuring that nuclear power plants are built at best value for money for the consumer.”

EDF said it was working with the government to agree a strike price which will be “fair and balanced for UK consumers and investors”.