Monday 5 September 2016

ScottishPower chief: Hinkley deal should be renegotiated

The controversial subsidy agreement for EDF’s proposed nuclear power plant in Somerset should be renegotiated.

That’s the view of Keith Anderson, Chief Corporate Officer at ScottishPower, who believes the deal agreed by the government for Hinkley Point C is “out of date” and “expensive”.

Under the proposed deal, EDF would receive £92.50 for each MWh of electricity generated for 35 years.

In an interview with The Telegraph, Mr Anderson said it looks like a contract “written five years ago on a business case that was probably pulled together 10 years ago”.

He added: “It looks out of line with what’s going on in the market now.”

Last month the UK Government unexpectedly postponed the final decision for the nuclear project until early autumn following which EDF chief Vincent de Rivaz urged Theresa May to give the go ahead.

Mr Anderson believes there are other alternatives that can be deployed at “less risk and lower cost”.

He told ELN: “If Hinkley Point does not progress, we are confident that there are proven alternative options that can be delivered at less risk and lower cost to UK households.  A combination of renewables, storage and gas will enable the UK to deliver carbon reduction targets while keeping the lights on.

“Energy is changing so fast that most of these options are available today – just look at what has happened in the last five years in energy.  We have to accept that we now have other options that can deliver a modern, reliable, low carbon systems at a lower cost to the UK public.”

Last month the head of Big Six supplier SSE said Hinkley Point’s significance to the UK’s needs for secure, modern supplies of electricity has been repeatedly overplayed.