Continued troubles for beleaguered EDF's, Hinkley Point

Energy supplier Ecotricity and Greenpeace have both signed a letter to Chancellor of the Exchequer George Osborne and Amber Rudd, energy and climate change Secretary, warning that attempts to finance the troubled Hinkley Point C nuclear plant with French state aid could break rules on European competition. French economy minister Emmanuel Macron’s suggestions of ways to ease the cost on beleaguered energy company EDF, including taking dividends in shares, prompted concern. Three competition barristers from Monckton Chambers in London offered the legal opinion such a move would require permission from Brussels, adding further delays to the Hinkley project.

Greenpeace has written to George Osborne warning him not to allow the Hinkley Point C nuclear project to proceed until the European commission approves further planned support from the French state.

The letter, which is signed jointly with the energy supplier Ecotricity, follows legal advice that plans for state help from France’sgovernment to enable EDF to continue with the reactor scheme could break European competition rules.

The legal opinion was given to Greenpeace by three competition barristers from Monckton Chambers in London and came as EDF held a board meeting on Friday in Paris to discuss once again the controversial £18bn project in Somerset.

“The only way Hinkley can be kept alive is on the life support machine of state aid. EDF, if it is to stay in business, needs a new vision which is not looking backwards,” said John Sauven, executive director of Greenpeace UK.

“The UK government needs to stop penalising the UK renewable energy industry in favour of propping up an ailing state-owned nuclear industry in France.”

Dale Vince, founder of Ecotricity, said it was time for everyone to realise that it was the end of the road for Hinkley Point.

“Illegal state aid is one thing, and we’ll work with Greenpeace to challenge that if it happens, but it’s not just financial issues, there are technical problems with Hinkley Point too – EDF are yet to build one of these reactors and their first two attempts are, between them, 16 years late and billions over budget,” he added.

The letter was also sent to Amber Rudd, the energy and climate change Secretary. Rudd and Osborne have been key figures in trying to steer investment into new nuclear plants.

EDF, which is 85% owned by the French state, is struggling against a mountain of debt and has told ministers it will not build Hinkley unless it obtains help from France’s government.

The country’s economy minister, Emmanuel Macron, has talked about taking future dividends in shares rather than cash and a range of other options to lessen the financial burden on EDF.

It is these proposals that the London barristers believe would need clearance from Brussels, a process that would subject Hinkley to further delays.

Molly Scott Cato, Green MEP for the area covering the plant, said: “The numbers for the Hinkley deal have never stacked up and it is clear that the commercial case for this white elephant is dead. We have now a political battle where the stakes for both the UK and France are just too high to admit failure. But we cannot let this override EU rules on state aid or fair competition.”