Senior EDF executives call for delay to Hinkley decision

An organisation representing senior executives at EDF has written to the chair of the Energy and Climate Change Committee calling for a final investment decision on Hinkley Point C to be delayed.

In an open letter to Angus MacNeil, the president of the French Federation of Energy Senior Executives Norbert Tangy highlighted numerous difficulties faced by EDF.

Most concerned the French nuclear reactor company Areva NP which – alongside EDF – developed the European Pressurized Reactor (EPR) that is planned for Hinkley. In July last year EDF agreed to buy a majority stake in Areva NP at the behest of the French government, which owns the bulk of shares in both Areva and EDF.

According to Tangy, Areva NP is currently facing a “difficult situation”, following “a series of bad news” since the beginning of the year. In April France’s Nuclear Safety Authority (ASN) announced that “irregularities” had been found in manufacturing checks on 400 reactor parts produced since 1965 at the Creusot steel forge, which Areva bought in 2006.

They were uncovered as part of an audit into the forge which was launched by the regulator last year. It followed the discovery of a manufacturing “anomaly” in the reactor vessel for the Flamanville 3 EPR being built in France.

ASN is currently conducting tests on the reactor vessel before it reports back at the end of this year. Tangy said there is a risk the reactor could not receive final clearance following the conclusion of the testing.

He said the vessel for the Taishan 1 reactor being built in China, which was due to become the first EPR to be commissioned, suffers “identical flaws”. Delays to its commissioning could mean useful feedback for the construction of Hinkley being held up, he added.

Areva NP is also in the midst of major lawsuit with the Finnish company TVO regarding cost overruns and delays at the Olkiluoto 3 reactor. Tangy said the discovery of irregularities at the Creusot forge could leave Areva NP open to further litigation.

In addition, Tangy said EDF’s offer to purchase Areva NP expired at the end of March, and there have been no updates on the proposed acquisition since then. He said this “no-decision situation” was adding to “governance uncertainties”.

Furthermore, he said EDF itself lacked a sufficient workforce, both in numbers and “skill levels” to safely manage the construction of a number of new reactors at the same time as extending the lives of existing nuclear fleet.

Finally, he added, there is a risk that EDF and Areva’s plans to raise extra cash to sure up their balance sheets could face legal challenges under EU state aid rules.

Earlier this week EDF Energy chief executive Vincent de Rivaz said an out vote in this week’s EU referendum would not affect the need to build Hinkley, as he urged employees at the company to vote remain.

EDF is relying on financial support from the French government in order to build the project. At the end of April France’s economy Emmanuel Macron revealed that a decision might not be made until late September, and would not happen in mid-May as De Rivaz had previously indicated. He said it would only go ahead once EDF had held a consultation with employees.

Speaking before the Energy and Climate Change Committee in May de Rivaz said the consultation would conclude no earlier than the beginning of July. A few days later the secretary of EDF’s central works committee said the unions represented on the company’s board would be unlikely to give their blessings to Hinkley.