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Hinkley Nuclear Delay 'Bonkers', Govt Warned

Delaying a final decision on building a new nuclear power plant in Somerset is "bewildering and bonkers", the Government has been warned.

The EDF board voted 10-7 in favour of going ahead with the £18bn project at Hinkley Point.

But the Government shocked the industry when it announced it was still looking at the details of the scheme and would not make a final decision until the autumn.

EDF chief executive Vincent de Rivaz had been expected to give interviews at the site with the finalising of the deal on Friday, but following the Government statement these were cancelled.

There has been speculation that the Prime Minister Theresa May was involved in postponing the project to allow more time for the details to be examined.

Hinkley Point C (HPC), which would power 5.8 million homes and create 25,000 jobs, is already years behind schedule.

There has been criticism that the guaranteed price EDF would be paid for power produced at Hinkley - £92.50 per unit of electricity generated - was too expensive.

Doubt has also been cast over EDF's ability to deliver the project, underlined by the resignation of board member Gerard Magnin on Thursday arguing the project was financially risky.

And there have been security concerns over China, which has a third stake in the project, investing in Britain's critical infrastructure.

Following the delay, shares in EDF rose 8% in France, although it is unclear whether this was in response to the firm's investment decision making the development more likely or because the Government review could lead to the project being scrapped.

Justin Bowden, the GMB union's national secretary for energy, said: "Theresa May's decision to review the go-ahead on HPC is bewildering and bonkers.

"After years of procrastination, what is required is decisive action not dithering and more delay.

"This unnecessary hesitation is putting finance for the project in doubt and 25,000 new jobs at risk immediately after Brexit. It is a gross error of judgement and must be reversed."

Josh Hardie, CBI deputy director-general, said: "While it is understandable the Government wants to get to grips with the details of the Hinkley contract, it must press ahead to finalise the deal as soon as possible.

"It's crucial that we see clear and timely decisions, and send a definite message that the UK is well and truly open for business."

Business and Energy Secretary Greg Clark said: "The UK needs a reliable and secure energy supply and the Government believes that nuclear energy is an important part of the mix.

"The Government will now consider carefully all the component parts of this project and make its decision in the early Autumn."

Barry Gardiner, shadow energy secretary, said to have pulled the plug at the eleventh hour was "quite extraordinary".

He told Sky News: "The word that this sends out into the City is Britain is not a safe place to invest money."

Branding the decision "flaky" he stressed the need to consider the jobs at stake, but also called on the Government to use the opportunity to renegotiate the deal with EDF.

He felt the French government, which has a majority stake in the utility giant, would have some tough questions for the PM.

David Hall, Conservative deputy leader of Somerset County Council, told Sky News he was "a little disappointed" at the delay as it had been expected the contract would be signed.

He said: "It's a little frustrating, but the main task now is to maintain business confidence to make sure everyone remains ready to move forward as quickly as possible."

China General Nuclear (CGN), which has a third share in the scheme, said in a statement: "We respect the new Government's need to familiarise itself with a project as important to the UK's future energy security as Hinkley Point C and we stand ready to help the Government in this respect."