Ministers and EDF have been in talks for more than a year about the minimum price the company will be paid for electricity produced at the site, which the government estimates will cost £16bn to build.
The two sides have now agreed the "strike price" of £92.50 for every megawatt hour of energy Hinkley C generates. This is almost twice the current wholesale cost of electricity.
This will fall to £89.50 for every megawatt hour of energy if EDF Group goes ahead with plans to develop a new nuclear power station at Sizewell in Suffolk. Doing both would allow EDF to share costs across both projects.
Mr Davey said the deal was "competitive" with other large-scale clean energy and gas projects.
http://www.bbc.co.uk/news/business-24604218At twice the current wholesale price, this implies the minister expects the price of gas to more than double. It is indexed to general inflation:
The new reactors, which will cost £14bn, are due to start operating in 2023 if built on time and will run for 35 years. They will be capable of producing 7% of the UK's electricity – equivalent to the amount used by 7m homes.
In details released on Monday morning, the strike price – the fixed price at which output will be sold – has been set at £89.50 per megawatt hour for electricity produced at the new power station. That price will be fully indexed to consumer price inflation. But the price, at 2012 prices, is dependent on EDF moving ahead with a second plant, Sizewell C, in Suffolk. If it decides not to proceed, another £3/MWh will be added to the strike price for Hinkley, bringing it up to £92.50/MWh.
http://www.theguardian.com/environment/2013/oct/21/britain-nuclear-power-station-hinkley-edfThat, or the minister is lying, of course.
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