Energy committee told ‘the money is there’ for Hinkley

Hinkley Point C is “ready” and “the money is there” but EDF is consulting with unions before it makes a final investment decision, the chief executive of its UK arm told the Energy and Climate Change Committee this morning.

Vincent de Rivaz said: “A plan to address the overall situation of EDF… has been presented to the EDF board by the chairman with agreement from the French state.”

“The combination of the money coming from EDF and CGN – our Chinese partners – means the money is there,” he added.

De Rivaz was called back in front of the committee after saying at a previous meeting it would be “very reasonable” to expect a final investment decision to be made by mid-May. He said it would hinge on the French government agreeing to provide further financial support for the company.

However at the end of April France’s economy minister Emmanuel Macron revealed that a decision might not be made until late September. Speaking to the French newspaper Journal du Dimanche, he said the project would only go ahead if EDF held a consultation will employees and its financial position improved.

De Rivaz confirmed to the committee that EDF is consulting with unions through its central works committee but said the response would only constitute an “advisory opinion” and that the final decision would still be up to its board. The consulation began on 2 May and will last for a minium of 60 days. 

He said whilst some unions are of the opinion the project should be delayed by two or three years, the company’s position is that “there is no need for delay because the project is ready.”

However, he refused to give a prospective date for an investment decision, saying: “I don’t want to in any way prejudge the outcome of the consultation.”

Despite the postponement of the final investment decision, Macron reaffirmed the French government’s support for the project in a letter sent to the committee ahead of the meeting. In it he said whilst he appreciated that “a certain amount of impatience may be creeping in” it was “in the interests of all that EDF follows due process”.

He said the government was “fully behind” the nuclear plant and he had “every confidence that a final investment decision can be made rapidly after the end of the consultation”.

Energy minister Andrea Leadsom also appeared before the committee, saying she was confident the project would go ahead after being “overwhelmed” by the “massive amount of work” she witnessed on a recent visit to the Hinkley site.

She also reiterated comments made by energy secretary Amber Rudd that a delay to the project would not jeopardise the security of Britain’s energy supply. “We never put all our eggs in one basket,” she said, adding that other energy sources – renewables, gas and small modular reactors (SMRs) – would be able to fill any gaps.