The French Government wants the UK to shoulder more of the costs of new nuclear reactors currently being built by EDF Energy in the UK, French Finance Minister Bruno Le Maire said on Wednesday.
The UK currently has two major nuclear projects under construction: Hinkley Point C in the south-west of England and Sizewell C in the east. Both projects have been plagued by soaring costs and long delays, most of which are being covered by state-owned EDF, which was nationalised by the French Government last year in a bid to save the debt-laden company.
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“There needs to be an equitable sharing of costs,” Le Maire told reporters at an event celebrating the 50th anniversary of the International Energy Agency in Paris on Tuesday. The minister plans to discuss the matter with the UK’s finance minister.
The UK doesn’t currently put any money towards the new Hinkley reactors. EDF holds a majority stake in the project and funds most of its construction. China’s General Nuclear Power Group holds a 33% stake in Hinkley Point C but has refused to pay any more money towards overruns. Under a contract drawn up a decade ago, before costs had begun to spiral, the financial burden of any additional costs relating to the plant’s construction falls entirely on EDF.
Earlier this month, French ministers demanded loan guarantees from the UK to relieve pressure on the company’s finances, but the Government continues to insist it will not cover any costs. “Hinkley Point C is not a [UK] government project and so any additional costs or schedule overruns are the responsibility of EDF and its partners and in no way will fall on taxpayers,” a spokesperson said at the time.
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Hinkley boss Stuart Crooks said last month: “Running the project longer will cost more money and our budget has also been affected by rising civil construction costs. It is important to say that British consumers or taxpayers won’t pay a penny, with the increased costs met entirely by shareholders.”
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By GlobalDataOn the other hand, the UK partially funds the construction of Sizewell C, which was agreed under a different type of contract. It is also looking to raise £20bn (€23.4bn) in private investment, removing some of the financial burden from EDF.
