UK nuclear power project faces union protests, delay

The decision to hold up Hinkley Point comes after a meeting between Theresa May, the new United Kingdom prime minister and French president, Francois Hollande earlier this month where May was non-committal about the project, according to people present at the private talks, Bloomberg reported.

EDF is majority-owned by the French government, which supports the Hinkley Point power plant project.

In a surprise move, the government said it wanted to give the Hinkley Point C project further consideration, postponing approval until early autumn and leading to concerns the plant’s construction will be pushed back further.

The 18 billion-pound ($24 billion) nuclear reactors carry commercial risks for both France and Britain.

Josh Hardie, CBI Deputy Director-General, said in a statement Friday that “while it is understandable the government wants to get to grips with the details of the Hinkley contract, it must press ahead to finalize the deal as soon as possible”. The French energy company Electricite de France is to build the plant and its two reactors along with a Chinese partner.

The U.K. government’s last minute decision for a new review appears widely unexpected as officials of China General Nuclear Power, who is set to fund for a third of the project, are apparently in the U.K.to sign the deal.

It came after politicians from all parties raised fears about the enormous cost of the project, which will give EDF a guaranteed £92.50 for each unit of electricity. Opponents in Britain say the price at which the government has agreed to buy power from EDF for 35 years, at more than twice current market levels, is too high.

Justin Bowden, the GMB union’s national secretary for energy, described the decision to launch a review as “bewildering and bonkers”, while Friends of the Earth Scotland director Dr Richard Dixon warned the cost of the project meant there is a “significant risk” it will never be completed.

“One very attractive option is for the government to take a more active role and provide direct public investment in projects”.

EDF also unveiled a joint agreement with Areva to work together.

The French government, which pushed for the project and owns a majority stake in EDF, didn’t comment on the company’s decision.

Image: Hinkley Point C project will generate 25,000 job opportunities during its construction. “Workers are shovel-ready and raring to go, all they need is the green light from the EDF board”, said Kevin Coyne, an officer of UK’s largest union, Unite.

Tom Greatrex, the chief executive of the UK Nuclear Industry Association said, “I am now urging new ministers to quickly endorse the decision to show they are serious about industrial strategy, building new infrastructure by securing inward investment to create our low carbon energy supplies of the future”.