Political Agenda

“Labour will scrutinise detail of nuclear deal”

Almost five years since EDF first set out its plans to build four new nuclear power stations in the UK, energy secretary Ed Davey finally announced this week that a “broad commercial agreement” for Hinkley Point C had been reached.
Davey triumphantly told MPs that the deal vindicated the work of his department. “This announcement also represents a significant vote of confidence in our reforms,” he said.
The price, £92.50/MWh, which could fall to £89.50/MWh if EDF proceed with Sizewell C, was also called a success by Davey. “We have got the figure under £90, and I do not think that anyone thought that we would do that,” he said. “We have got a good figure through hard, tough negotiations.”
Labour, which agrees the UK needs new nuclear, welcomed the deal but said it would “look in detail” at the agreement.
Shadow energy minister Tom Greatrex accused the government of hypocrisy for criticising Ed Miliband’s promise to fix energy prices for 20 months while setting energy prices for nuclear for 35 years.
Davey said this claim demonstrated Labour’s “economic illiteracy”, adding that “even if a part of the electricity generation mix has a fixed price, most generating costs remain variable and will be for some time”.
In a buoyant mood after announcing the first new nuclear plant in the UK since 1995, he had one last swipe at Miliband’s price promise, saying “this is bad news for consumers, bad news for competition and bad news for investment”.