Point C will 'hit the poorest the hardest', says group of MPs
group of MPs has said that the £18bn cost of the new Hinkley
Point C nuclear power station near Burnham-On-Sea will hit the country's
poorest the hardest.
Public Accounts Committee said that households had been "locked
into an expensive deal lasting 35 years".
a report, it said there were no plans for Hinkley Point to provide
wider benefits such as jobs and skills.
EDF, the French firm funding two thirds of the project, said it
would bring "huge benefits" to Britain.
government gave the green light to Hinkley Point near Bridgwater
in Somerset last year, in a deal which guarantees EDF a fixed price
of £92.50 per megawatt hour for the electricity it produces
for 35 years. If
it falls below that level, consumers will pay the difference.
Department for Business, Energy and Industrial Strategy estimates
that top-up payments will cost consumers around £30bn.
its report examining the deal, the Public Accounts Committee said:
"Over the life of the contract, consumers are left footing
the bill and the poorest consumers will be hit hardest. Yet in all
the negotiations no part of government was really championing the
committee's chair Meg Hillier said: "Bill-payers have been
dealt a bad hand by the government in its approach to this project."
blinkered determination to agree the Hinkley deal, regardless of
changing circumstances, means that for years to come energy consumers
will face costs running to many times the original estimate."
doesn't know what UK workers and business will gain from this project,
and appears to have no coherent idea of what to do about it."
Energy said: "The cost of Hinkley Point C for customers has
not changed and they will pay nothing for its reliable, low carbon
electricity until the station is completed."
agreed price is lower than 80% of other low carbon capacity contracted
so far and the project has restarted UK nuclear construction after
a quarter century.
is fully underway and is already delivering a huge benefit to British
jobs, skills and industrial strategy."
company said: "It is drawing on firms from across Britain and
the South-West with 2,400 employees at the site and is on track
to meet its next milestones."
Committee's proposals follow a report in June by the National Audit
Office which called Hinkley Point C "a risky and expensive
project" and said the costs and risks for consumers had not
been sufficiently considered.