17 Dec (NucNet): A union that represents more than 600,000 energy and construction workers in the UK has said the unexpected EU blocking of the planned Hinkley Point C nuclear power station because it infringes state-aid rules would be “a disaster” for jobs and for energy supply.
GMB said it had learned that the EU College of Commissioners will be notified tomorrow, Wednesday 18 December, that the competition commissioner has “some doubts” about the Hinkley Point C agreement and is likely to agree to the launch of a formal investigation into the proposals.
This follows the announcement in October 2013 that EDF Group and the UK government had reached in principle an agreement on the key commercial terms for an investment contract for the construction of two EPR units at Hinkley Point C in Somerset.
One of those terms is a “strike price” of 89.50 pounds (about 145 US dollars, 105 euros) per megawatt-hour, which will increase in line with inflation.
The strike price had been the subject of negotiations between EDF and the government that began last year. It is the guaranteed price at which EDF will be able to sell the electricity it generates at Hinkley Point C.
Kathleen Walker Shaw, GMB European officer, said GMB understands that a 90-page internal document will be presented at an EU meeting tomorrow looking at “all the angles of the deal”. She said such forensic preparation of the case in advance, identifying all the issues, and looking at all options is common, as so many disputed competition cases end up in court.
Once the investigation is formally launched, the EU Commission will launch a consultation period of four weeks for interested third parties to put forward their views, GMB said. The date of the formal launch will be published in the Official Journal of the EU – this is likely to be in January 2014.
According to GMB, Joaquin Almunia, the commissioner for competition, has indicated he would wish to see the investigation concluded before the end of the current EU Commission term in October 2014. There is optimism it will be completed by summer 2014.
Gary Smith, GMB national secretary for energy, said the EU investigation is a routine and normal process within state aid and competition procedures and that an investigation is under way is “no basis for scaremongering reports”.
However, he said the UK is already several years behind schedule on new nuclear. He said: “Were the EU to block Hinkley Point C for some unexpected reason this would be a disaster for jobs and the associated UK nuclear industries. It cannot be overstated what a blow this would be to our energy sector and the related jobs.”
