Financial crisis for Britain’s new nuclear power project

New threat to Hinkley nuclear plant cash, Sunday Times, Danny Fortson 31 January 2016 BRITAIN could withdraw financial support for the controversial £18bn nuclear power station at Hinkley Point, Somerset, if a similar plant being built by France’s EDF is not running by 2020, The Sunday Times can reveal.

The condition, attached to a Treasury loan guarantee, raises fresh questions about the future of Britain’s first new atomic power plant in a generation.

Last week EDF, which is 84% owned by the French state, postponed a board meeting in Paris to approve Hinkley Point, amid concerns about the heavily indebted company’s ability to fund the project. The plant will be financed by EDF and its Chinese partner CGN, with the backing of a 35-year contract to sell power to households at above-market rates.

The arrangement hinges on a Treasury agreement to guarantee up to 17 billion pounds in loans…. (registered readers only) http://www.thesundaytimes.co.uk/sto/business/energy_and_environment/article1662807.ece?CMP=OTH-gnws-standard-2016_01_30