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France’s EDF ‘knew’ about British nuclear plan delay

France's EDF were not taken by surprise by the British decision to delay a decision on its planned nuclear power plant.

France's EDF 'knew' about British nuclear plan delay
Photo: AFP

French energy giant EDF learned the British government wanted to delay its final decision on the Hinkley Point nuclear power plant the day before its board met to approve the plan, according to an email from its CEO seen by AFP.

EDF approved the £18 billion project ($24 billion, 21 billion euro) plan to build Britain's first new nuclear plant in decades — a project that had deeply divided the company's directors — on July 28.

But the British government immediately said it would wait until the autumn before taking a final decision.

In an email to EDF's executive committee, CEO Jean-Bernard Levy said he learned “late on the evening of Wednesday 27” that British Prime Minister Theresa May “was asking for a little more time, without reassessing the project, without giving the date when it could be signed,” and “that she would not discuss the matter”.

“We therefore cancelled the preparations for the signature (ceremony),” he wrote in the email, sent on Tuesday evening.

A ceremony to sign the deal on Hinkley Point had been planned in Britain on July 29, the day after the EDF board met to approve it, Levy said.

“So when the board voted, the afternoon of Thursday 28, we knew the ceremony would not go ahead the next day,” he wrote.

But he said the company was not aware of the content of the British government's statement issued in the hours after the EDF board decision.

Britain's business and energy minister Greg Clark said the government would “consider carefully all the component parts of this project and make its decision in the early autumn”.

May must approve the deal before it can go ahead.

The French government has been keen to get Hinkley Point approved as it sees the project as crucial for the long-term viability of France's nuclear industry, which employs 220,000 people.

Previous British governments have also been in favour because the reactors will cover up to seven percent of Britain's electricity needs while helping the government meet its CO2 emissions targets.

But British support is not unanimous, and criticism focuses on the growing difference between an electricity price guarantee for EDF, subsidised by the British taxpayer, and current falling energy prices.

There have also been national security concerns about Chinese involvement in the project — Beijing has a one-third stake in the plan.

Contacted by AFP, EDF declined to comment.

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BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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