The UK government wants to grant
unprecedented levels of public subsidies and disproportionately favourable
conditions for the mainly state-owned French energy giant EDF to build two new
nuclear reactors at Hinkley, in the south-west of England. The Commission is
currently investigating the UK plan for a possible breach of EU competition
rules.
UK ministers unsuccessfully lobbied the EU
executive until the very last minute to make nuclear energy eligible for aid
under the new rules.
UK ministers came under fire after agreeing
to pay EDF a fixed amount for the electricity generated at the plant over the
next 35 years which was set at double the current market price. It is estimated
this strike price agreement will cost bill payers more than €36 billion (£30
billion) over the plant’s lifetime, leading commentators to brand Hinkley as
the “world’s most expensive power station”’ [1].
Commenting on the new state aid rules for
nuclear, Greenpeace UK energy campaigner Louise Hutchins said:
“These new rules are a serious blow for Cameron’s plans to waste billions
in bill payers’ money on Hinkley, probably the world’s most expensive power
station project. It is now clearer than ever that nuclear energy is not
eligible for state subsidies and that the UK plan is at odds with competition
and EU energy market laws. If the government is really worried about energy
security it should plough investment into Britain’s clean renewable energy
where prices are tumbling, and into energy efficiency measures.”
But the new rules, which will come into force
on 1 July 2014, have also been criticised for putting the brakes on small and
mid-scale renewable energy projects.
Greenpeace submitted to the Commission
earlier this week a legal analysis of the planned state aid for Hinkley,
outlining how it would violate EU competition rules.
ENDS
Notes:
[1] http://www.spectator.co.uk/features/9141142/why-has-britain-signed-up-for-the-worlds-most-expensive-power-station/
Contacts:
For all issues related to EU state aid:
Frederic Thoma - Greenpeace EU energy policy adviser: +32
(0)486 401 895, Frederic.Thoma@Greenpeace.org
Greenpeace EU pressdesk: +32 (0)2 274 1911, pressdesk.eu@greenpeace.org
For state aid and Hinkley:
Greenpeace UK
press office: +44 (0)20 7865 8255
This press comment is also available on www.greenpeace.eu
For breaking news and comment on EU affairs: www.twitter.com/GreenpeaceEU
