EDF director says success of on-going negotiations with government is not 鈥榠n any way assured鈥�
After months of negotiation the prospects for a deal between the government and EDF on power prices that would pave the way for construction of EDF鈥檚 拢10bn Hinkley Point C nuclear power station remain slim, according to one of EDF鈥檚 directors.
The government and EDF remain locked in negotiations over what price EDF will be guaranteed for the electricity from its planned nuclear power plant, an essential component in enabling the firm to make the massive investment.
Lord Jay of Ewelme, who is a non-executive director on EDF鈥檚 board, said that he 鈥渉oped very much鈥� that the parties would reach an agreement.
Speaking at a House of Lords debate on nuclear power on Monday he said: 鈥淎 year or so ago, I would have said that they seemed condemned to do so. However, having observed negotiations more recently, albeit indirectly from both Paris and London, I do not think that success is in any way assured.鈥�
Lord Jay said he hoped he was 鈥渂eing too pessimistic鈥�.
He added: 鈥淚f we do not renew our nuclear capacity over the next 10 or more years, I believe that we will face real problems of energy security as existing nuclear and coal-based plants close, as gas prices rise when, as it is hoped at some point, the economy picks up, with shale gas being less significant inevitably on this side of the Atlantic than on the other side, and as wind power remains expensive and intermittent.鈥�
Baroness Verma, under-secretary of state for energy, said the negotiations were ongoing and it 鈥渨ould not be right鈥� to discuss where the negotiations were.
She added: 鈥淎ll we can say is that this government are determined that, whatever price is agreed, it will allow for fairness and provide value for money for the consumer.鈥�
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