EDF confirms Hinkley delay

French energy giant EDF on Thursday confirmed reports that a final investment decision on its £24.5 billion Hinkley Point C nuclear project will be delayed until after the UK general election.

The UK’s first new nuclear project in a generation was expected to receive the final go ahead from investors in March this year, but EDF said on Thursday that outstanding issues to be negotiated mean that a decision will only be possible “in the next few months”.

“EDF and the UK Government are working hard to finalise all agreements on Hinkley Point C and are making significant progress in all areas with the shared objective of finalising documents in the coming weeks. This will allow a final investment decision to be possible in the next few months,” the company said in Thursday’s financial results for last year.

“EDF is also making progress in discussions with future investment partners in the project. In particular, progress is being made with Chinese partners on all aspects of their nuclear industrial co-operation in the UK, which is part of the wider partnership between EDF and Chinese companies,” it added.

Earlier this week reports surfaced in the UK’s national media that the Chinese companies are refusing to invest unless the French government promises to bail out reactor developer Areva, if necessary, and cover cost overruns.

An article in the Times claimed the French government will agree, but that working out a financial agreement for Areva will delay the final deal until September or October this year.