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Hinkley Point Nuclear Plant Gets Go Ahead

Britain's first new nuclear power plant in a generation has been given the go ahead by the energy giant EDF (Paris: FR0010242511 - news) .

It is understood the board of the French company voted 10-7 in favour of investing in the site in Somerset, which will replace Hinkley Point B, which is due to be decommissioned in the next decade.

Hinkley Point C will power 5.8 million homes and create 25,000 jobs.

In a statement, EDF said the plant would be a "unique asset for French and British industries as it will benefit the whole of the nuclear sectors in both countries and will support employment at major companies and smaller enterprises in the industry".

The power station was originally meant to open next year, but that has now slipped to 2025 and within the contract there is potential for further delays.

Earlier today, Gerard Magnin stepped down from EDF's board, saying the £18bn project was financially risky.

Many opponents of the development have also voiced fears that it is a bad deal for customers and taxpayers.

Greenpeace executive director John Sauven said the decision was "a bitter pill to swallow for hard-up people who have been told that the government is trying to keep bills down while dealing with energy security and lowering carbon emissions".

He added: "Today's decision doesn't prove the UK is open for business post Brexit - it just shows the Hinkley deal became too big to fail in the eyes of British and French politicians."

The UK government has guaranteed a price of £92.50 per megawatt hour for the electricity Hinkley produces for 35 years - more than double the current price.

The cost of wholesale energy has fallen since the price was agreed, leaving the Government to make up the difference.

The UK's National Audit Office estimated future top-up payments would rise from £6.1bn to £29.7bn over the length of the contract.

Barry Gardiner, shadow energy secretary, said: "Labour is clear that there is a role for new nuclear as part of our future low carbon infrastructure; but not at any price.

"The Government's failure to get a grip of the public interest here shows a startling level of incompetence."

Nuclear Industry Association chief executive Tom Greatrex rejected criticisms of the price being paid for electricity.

"The comparison point has got to be what is the wholesale cost of electricity from the point it starts generating to the end of the 35 years," he told Sky (LSE: BSY.L - news) 's Ian King Live.

"In the last five years the wholesale price of electricity has fluctuated between just under £30 per megawatt hour to up to £120.

"There is no free way of being able to build the infrastructure to generate the power we need if you want to ensure it is as low carbon as possible and if you want to reduce our exposure to the volatility of wholesale prices."

Recently, Chancellor Philip Hammond said the scheme was "still worth the cost", with the Government suggesting that customers' bills would rise by about £10 once the plant was up and running.

Kate Hudson, general secretary for the Campaign for Nuclear Disarmament, called on the Government to scrap the deal, saying: "The new power plant will saddle future generations with an astronomical environmental and economic debt."

The GMB welcomed the board's go ahead for the plant, however.

The union's national secretary for energy Justin Bowden described it as "great news for the economy and a first stop in plugging the UK energy needs gap that exists due to the Government's failure to have a proper, balanced energy policy".

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."