Theresa May spent her first few months as Prime Minister reversing many of her predecessor’s policies. But there is one which she may well end up regretting that she failed to reverse: going ahead with the contract for French state electricity company EDF to build the Hinkley Point C nuclear power station. Yesterday, EDF announced that its estimate for the construction cost of the project has risen £1.5 billion to £19.6 billion, and that the project could be delayed by yet another 15 months.
Notionally the extra costs will not fall upon taxpayers – EDF is supposed to be shouldering the risks for the project, for which it is being handsomely rewarded with a guaranteed price of £92.50 per MWh for the first 35 years of operation, roughly twice what electricity distribution companies pay for power. The cost will be passed onto consumers.
Yet the reality is that EDF has the government by the short and curlies.
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