EDF To Decide On Nuclear Plant Next Week

EDF (Paris: FR0010242511 - news) bosses will meet next week to make its long-awaited final decision on plans to build two nuclear reactors at Hinkley Point in Somerset.

The French energy giant said its board would meet on 28 July with the agenda for the meeting including the "final investment decision" on the Hinkley Point C project.

A final announcement on whether the plan would go ahead has repeatedly been delayed.

It (Other OTC: ITGL - news) is seen as vital for the UK's future energy needs as it would provide 7% of the country's electricity when up and running in 2025.

EDF said the project would strengthen its presence in Britain where it already operates 15 nuclear reactors and is the largest electricity supplier by volume.

Critics have questioned the Government guarantee to EDF on the price it would receive for the electricity produced at Hinkley - a deal which could see top-up payments to the company for the payments rise to £30bn according to the National Audit Office.

The cost of building the plant - which is also backed by Chinese investor CGN - was estimated last autumn at £12bn but has since soared to £18bn.

In May, it was revealed that the companies were also planning for an additional contingency of nearly £3bn.

EDF has been consulting its work council over the deal amid concerns from French unions about its cost.

The company's finance director quit in March, apparently because he thought the project could jeopardise its finances.

The business has brushed off doubts about whether it would go ahead.

Greg Clark, the new Business and Energy Secretary, welcomed the announcement that a decision was now closer.

He said: "New (KOSDAQ: 160550.KQ - news) nuclear is an essential part of our plan for a secure, clean and affordable energy system that will power the economy throughout this century."