Hinkley C set to get approval from European Commission

Energy Company EDF's plans for the new power plant at Hinkley have been on hold while awaiting the outcome of the European Commission's investigation into whether the terms of the subsidy deal struck with the Government, constituted illegal state aid.

The Commission says the consumer-funded subsidies that could total up to £17.6 billion risk giving the French energy firm excess profits and could throw off competition.

A final decision is expected in the next few weeks.

A spokesperson for EDF Energy saiid: "Confirmation that Vice-President Almunia recommends that the College of Commissioners approve the agreement on Hinkley Point C is another positive step forward for this vital project.

"The process to gain approval continues in line with the expected timetable.

"This agreement between the UK Government and EDF for the first new nuclear power station in Britain since 1995 is fair and balanced for consumers and investors alike.

"The State Aid investigation has been rigorous, robust and thorough and we expect that the College of Commissioners will recognise this.

But not all are celebrating the news.

Stop Hinkley Campaign spokesperson Allan Jeffrey said: “Surely the job of the European Competition Commissioner is to make sure taxpayers’ and electricity consumers’ money is spent on the most cost effective measures to reduce carbon emissions and provide energy security.

"Hinkley Point C is neither.

"The most cost effective way to reduce carbon emissions is to use energy more efficiently, but this Government’s energy efficiency programmes have been a disaster.

"And renewable technologies are being unfairly constrained despite the fact that solar and offshore wind are likely to be cheaper than nuclear by 2023, and could start generating much sooner.”

“If this deal goes ahead it will be a slap in the face for Ban Ki Moon because our efforts to tackle this urgent problem will be severely constrained.”