Plans to build the first new UK
nuclear plant in 20 years have suffered an unexpected delay after the
government postponed a final decision until the early autumn.
French
firm EDF, which is financing most of the £18bn Hinkley Point project in
Somerset, approved the funding at a board meeting.
Contracts were to be signed on Friday.
But Business Secretary Greg Clark has said the government will "consider carefully" before backing it.
EDF chief executive Vincent de Rivaz has cancelled a trip to Hinkley Point on Friday following Mr Clark's comments.
Critics of the plan have warned of environmental damage and potential escalating costs.
They
are also concerned that the plant is being built by foreign
governments. One third of the £18bn cost is being provided by Chinese
investors.
om Greatrex, the chief executive of the Nuclear Industry Association,
urged the government to make a decision as soon as possible.
"We
need to get on and do this and that's why I'm hoping the government make
their decision very soon because if it goes on for a lengthy period of
time we are going to run the risk of having real problems in terms of
our energy supplies," he said.
"Then what happens is that we end
up paying a lot more and we end up paying for much more dirty power
which we can't afford to do if we are to meet our climate commitments."
Claire
Jacobson, head of climate, energy and environment policy at the EEF
manufacturers' organisation said the government's decision was "yet
another blow to a decision that has been hindered by many delays and
uncertainties".
Cost warning
Hinkley Point C is expected to provide 7% of the UK's total electricity requirement.
Announcing
the approval of investment on Thursday, EDF had described the plant as
"a unique asset for French and British industries", saying it would
benefit the nuclear sectors in both countries and would give a boost to
employment.
However, the project has been hit in recent months by concerns about EDF's financial capacity.
Despite
the Chinese investment, Hinkley Point would remain an enormous
undertaking for the stressed French company, which has had to raise
money from its owners.
Earlier this week, EDF shareholders approved plans to issue new shares to raise €4bn (£3.4bn) to help pay for the project.
Ahead
of Thursday's vote on whether to approve the project, an EDF board
member, Gerard Magnin, resigned, saying the project was "very risky"
financially.
Earlier this year, EDF's finance director, Thomas
Piquemal, had resigned amid reports he thought Hinkley could damage EDF
itself.
'Too big to fail'
Environmentalists
are also concerned about the plan. Greenpeace executive director John
Sauven said: "Countless experts have warned that for British families
this power station will be terrible value for money.
He added that
EDF's decision to go ahead with the investment, "doesn't prove the UK
is open for business post-Brexit - it just shows the Hinkley deal became
too big to fail in the eyes of British and French politicians".
The campaign group added that more investment was needed for renewable energy such as offshore wind.
Hinkley Point timeline
Jan 2006 - Government proposes nuclear as part of future energy mix
Mar 2013 - Construction of Hinkley Point approved
Oct
2013 - UK government agrees £92.50 per megawatt-hour will be paid for
electricity produced at the Somerset site - around double the current
market rate at the time
Oct 2015 - EDF signs investment agreement with China General Nuclear Power Corporation (CGN)
July
2016 - EDF board approves final investment decision, but the UK
Government postpones a final decision on the project until autumn.
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