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EDF, UK Govt. Reach Agreement For Planned Hinkley Point C Nuclear Power Station

Electricité de France SA (ECIFF.PK), and the UK Government Monday announced that they have reached an agreement for an investment contract of the planned Hinkley Point C nuclear power station. The power station is expected to provide UK with low carbon electricity at a fair price for consumers as well as create more jobs. EDF Group has secured AREVA for the financing of the project, under which EDF group's share of equity is expected to be 40 - 50 percent, and AREVA to be 10 percent.

The agreement also confirmed that the project will benefit from the Government's Infrastructure Guarantee under terms and conditions to be agreed upon. EDF Group has plans for two EPR reactors at Hinkley Point C in Somerset. In addition, it is also developing proposals for two EPR reactors at Sizewell C in Suffolk. Pursuant to the agreement, Hinkley Point C will offer stable and predictable prices through a 'Contract for Difference.' Under this, the consumers will not pay extra, if the wholesale prices rise above an agreed 'strike price.' If it falls below this mentioned proce, the generator will receive a top-up payment, and customer pay nothing until the power station is operational.

The most important suppliers to the project have now been finalized subject to a final investment decision, are Bouygues TP/Laing O'Rourke, Costain, Alstom and Areva.

"The agreement in principle reached today with the British government significantly strengthens the industrial and energy co-operation between France and the United Kingdom. The EPR project at Hinkley Point represents a great opportunity for the French nuclear industry in a context of a renewal of competencies." EDF Group Chairman and CEO Henri Proglio said.

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by RTT Staff Writer

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