EDF boss: Hinkley won’t go ahead without French state funding

Hinkley Point C will not go ahead without the financial support of the French government, EDF chief executive Jean-Bernard Lévy has warned.

In a letter to employees Lévy said: “We are currently negotiating with the French State to obtain commitments allowing us to secure our financial position. It is clear that I will not engage EDF in this project before these conditions are met.”

He said the company’s financial position had already been improved with an agreement to pay ‎€1.8 billion of dividends to the government in the form of shares.

Last week EDF’s chief financial officer Thomas Piquemal left the company, reportedly over a disagreement with Lévy over whether or not press head with a final investment decision.

Lévy defended the viability of the project, saying the economics of the project have been “thoroughly examined” by independent experts. He said the risks are “well known” and can be overcome by implementing a series of recommendations.  

He also highlighted the support of the French and British governments, as well as the commitment of EDF’s partner China General Nuclear Power, which owns a 33.5 per cent stake in the project.

Over the weekend the UK government published a list of five reasons why it is backing Hinkley Point C. They include the economic impact the project – creating jobs and drawing in investment – as we as its ability to provide a consistent source of low-carbon energy.

Addressing concerns over the European Pressurised Reactor (EPR) technology planned for the new nuclear plant, Lévy said lessons had been learnt from the company’s Flamanville 3 plant in France, which is behind schedule and over budget.

He argued that the development of the technology would “open further avenues” for EDF when France’s nuclear fleet requires renewal.

Former energy minister Charles Hendry has warned that Britain’s energy policy will be left with a “whopping great big hole” if no new nuclear plants are built.