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https://www.nao.org.uk/report/hinkley-point-c/
Today’s report finds that the Department has not sufficiently considered the costs and risks of its deal for consumers. It only considered the impact on bills up to 2030, which does not take account of the fact that consumers are locked into paying for Hinkley Point C long afterwards. It also did not conclude whether the forecast top-up payments are affordable.
The government’s case for the project has weakened since it agreed key commercial terms on the deal in 2013. Delays have pushed back the nuclear power plant’s construction, and the expected cost of top-up payments under the Hinkley Point C’s contract for difference has increased from £6 billion to £30 billion. But the Department’s capacity to take alternative approaches to the deal were limited after it had agreed terms. The government has increasingly emphasised Hinkley Point C’s unquantified strategic benefits, but it has little control over these and no plan yet in place to realise them.
https://www.theguardian.com/uk-news...demns-risky-expensive-hinkley-point-c-nuclear
Under the terms of the 35-year contract, EDF is guaranteed a price of £92.50 per megawatt hour it generates, twice the wholesale price.
The subsidy is paid through energy bills, which the government estimates will translate to a £10 to £15 chunk of the average household bill by 2030.
At the heart of the spending watchdog’s criticism is the coalition government’s failure to look at any alternative financing model, such as taking an upfront stake in the £18bn project.
This is either ineptness on a grand scale or corruption.
If Theresa was any sort of leader she would have cancelled this.
Today’s report finds that the Department has not sufficiently considered the costs and risks of its deal for consumers. It only considered the impact on bills up to 2030, which does not take account of the fact that consumers are locked into paying for Hinkley Point C long afterwards. It also did not conclude whether the forecast top-up payments are affordable.
The government’s case for the project has weakened since it agreed key commercial terms on the deal in 2013. Delays have pushed back the nuclear power plant’s construction, and the expected cost of top-up payments under the Hinkley Point C’s contract for difference has increased from £6 billion to £30 billion. But the Department’s capacity to take alternative approaches to the deal were limited after it had agreed terms. The government has increasingly emphasised Hinkley Point C’s unquantified strategic benefits, but it has little control over these and no plan yet in place to realise them.
https://www.theguardian.com/uk-news...demns-risky-expensive-hinkley-point-c-nuclear
Under the terms of the 35-year contract, EDF is guaranteed a price of £92.50 per megawatt hour it generates, twice the wholesale price.
The subsidy is paid through energy bills, which the government estimates will translate to a £10 to £15 chunk of the average household bill by 2030.
At the heart of the spending watchdog’s criticism is the coalition government’s failure to look at any alternative financing model, such as taking an upfront stake in the £18bn project.
This is either ineptness on a grand scale or corruption.
If Theresa was any sort of leader she would have cancelled this.