Hinkley Point nuclear plant deal will 'help Britain succeed,' says PM David Cameron

 
Plant deal: David Cameron meets workers at Hinkley
Pa21 October 2013

The Prime Minister said today that a new deal for a nuclear power plant was part of Conservative plans to 'help Britain succeed'.

Speaking this morning, David Cameron said: "As part of our plan to help Britain succeed, after months of negotiation, today we have a deal for the first nuclear power station in a generation to be built in Britain.

"This deal means £16 billion of investment coming into the country and the creation of 25,000 jobs, which is brilliant news for the South West and for the country as a whole."

Speech: David Cameron at the power plant

The agreement with French-owned EDF Energy will see Hinkley Point C begin operating in 2023.

But ministers are likely to face criticism over the £92.50 per megawatt hour that will be paid for electricity produced at the Somerset site - around double the current market rate.

Plant tour: David Cameron put on blue overalls and an orange hard hat to meet workers at the plant

The Prime Minister later donned a blue boiler suit and orange hard hat where he met workers at Hinkley Point B in Somerset.

Addressing workers at the site, he said it was: "vitally important we invest in nuclear energy."

Energy Secretary Ed Davey earlier hailed the landmark deal to build Britain's first new nuclear plant in a generation.

The £92.50 so-called 'strike price' could fall by £3 if another mooted development at Sizewell goes ahead, allowing for efficiencies in development and testing.

PM visit: Dave told workers nuclear energy is 'vitally important'

The contract is due to run for 35 years, with the electric price increasing annually in line with CPI inflation. At full capacity the two reactors could provide up to 7% of the country's energy needs.

One of the last stumbling blocks to a deal was removed last week when Chancellor George Osborne announced that Chinese firms would be allowed to invest in civil nuclear projects in the UK - even potentially taking a majority stake.

PA
PA

Mr Davey insisted he had secured "good value" following more than a year of intense negotiations. The project will cut the UK's carbon emissions by nine million tonnes a year, and create thousands of jobs.

He stressed that the construction risks were being borne by the companies, and the Government would not be on the hook for any overspends.

The announcement comes with energy policy high on the agenda after the Big Six power firms began unveiling hikes of more than 9% in electricity and gas prices.

Labour leader Ed Miliband has sought to gain the political initiative by pledging to freeze retail prices for 20 months if he wins the 2015 general election.

The Archbishop of Canterbury, the Most Rev Justin Welby, and Deputy Prime Minister Nick Clegg both raised concerns about the increases yesterday.

Mr Welby told the Mail on Sunday the companies had to be "conscious of their social obligations" and "behave with generosity and not merely to maximise opportunity".

Mr Clegg demanded more evidence that the hikes were needed at all.

"Clearly the companies need to justify the bill increases that they are now announcing," the Liberal Democrat leader told Sky News' Murnaghan programme.

Hinkley Point C will be the first new nuclear power station to be built since Sizewell B, which started generating electricity in 1995.

The Government said building a new fleet of nuclear power stations could reduce bills by more than £75 a year in 2030.

Around 25,000 jobs are expected to be created during construction of the power plant as well as 900 permanent jobs during its 60-year operation.

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