Theresa May expected to give Hinkley nuclear deal go-ahead

The Chinese-funded nuclear power station at Hinkley Point is expected to get the go-ahead this week.

Theresa May slammed the brakes on the £18bn deal agreed by her predecessor two months ago, amid claims she was anxious about the security implications.

But Downing Street has promised there will be a decision this month, and there are just days to go as Parliament rises for the party conference season this Friday.

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The Hinkley C plant in Somerset would be built by French-owned EDF, but a third of the cost will be put up by Chinese state companies.

There had been concerns about the high cost Britain had agreed to pay to EDF for the electricity generated, and the design of the reactor - which has been plagued by delays in other countries.

When the deal was agreed by David Cameron last year, the agreement concerned only Hinkley Point but said the Government would look favourably on a Chinese-built reactor at Bradwell in Essex.

Security experts are more concerned about a Chinese-built reactor in terms of giving a foreign power access to key infrastructure in Britain.

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It has been suggested the Bradwell part of the deal could be dropped - which would be a blow to China, which is trying to build its reputation internationally as a supplier of nuclear power.

Asked about Bradwell on Tuesday, the business and energy secretary Greg Clark told MPs (BSE: MPSLTD.BO - news) that "the decision is on the particular contract …with Hinkley C. That's what we are reviewing."

He also reiterated Britain's commitment to nuclear power as an important part of the energy mix.

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Mrs May had the chance to speak to Chinese President Xi Jinping at the G20 summit his country hosted earlier this month, and officials expect the deal will now go ahead.

Supporters say the project will generate tens of thousands of jobs (Other OTC: UBGXF - news) .