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MPs attack government line on Hinkley Point C nuclear subsidies

The government is wrong to insist Hinkley Point C is not being subsidised, a cross-party group of MPs has told the European Commission.

In a submission to Brussels’ probe into the UK’s new nuclear support plans, the Environmental Audit Committee (EAC) said the government’s line “makes no sense”.

Committee chair Joan Walley highlighted the findings of a parliamentary inquiry into energy subsidies, which rubbished the government’s claim to be providing no public subsidy for Hinkley Point. “It is already clear that new nuclear is being subsidised,” she wrote.

The letter, dated 18 March and addressed to competition commissioner Joaquin Almunia, piles further pressure on the UK government to defend the deal struck with EDF Energy. Incentives to build Hinkley Point C include a guaranteed “strike price” of £92.50/MWh for power generated.

The EAC submission will be considered as part of the European Commission’s investigation into whether the Hinkley Point package meets state aid rules. The Commission’s initial view raised a number of concerns with the proposals.

The case has already caused ructions with the Scottish Government, with first minister Alex Salmond earlier this month complaining Scottish views were being stifled. His ruling Scottish National Party takes an anti-nuclear line.

UK energy minister Michael Fallon reportedly told his Scottish counterpart Fergus Ewing any representations to Brussels on the matter would be viewed as a “hostile act”. Any concerns should be raised directly with Whitehall, he argued.