EC approval for Hinkley Point C rings UK nuclear starting bell

Today’s announcement follows an investigation into whether the so-called contracts for difference (CFD) regime conformed with EU competition rules.

CFDs are intended to guarantee Hinkley Point C’s operator with stable revenues for a period of 35 years. According to Commission, the operator will also benefit from a state guarantee covering any debt the operator will seek to obtain on financial markets to fund the construction of the plant.

The Commission said it was satisfied that the UK had agreed to ‘significantly modify’ the terms of the project’s financing, adding ‘state aid provided will remain proportionate to the objective pursued, avoiding any undue distortions of competition in the Single Market.’

Commission vice-president Joaquín Almunia, said: ‘These modifications will also achieve significant savings for UK taxpayers. On this basis and after a thorough investigation, the Commission can now conclude that the support is compatible with EU state aid rules.’

Welcoming today’s announcement, Lord Hutton of Furness, chairman, Nuclear Industry Association, said: ‘This is an important step in securing the UK’s home-grown low-carbon electricity generation while adding jobs and prosperity to the economy.