Government approves Hinkley Point deal

These measures include reforms to the government’s approach to the ownership and control of critical infrastructure – ensuring “the full implications of foreign ownership are scrutinised for the purposes of national security”.

There will also be a review of the public interest regime in the Enterprise Act 2002 and the introduction of a cross-cutting national security requirement for continuing government approval of the ownership and control of critical infrastructure.

We have decided to proceed with the first new nuclear power station for a generation

Secretary of State Greg Clark

As part of the agreement, the government has also introduced new powers to prevent the sale of EDF’s controlling stake in Hinkley Point C prior to the completion of construction, without the prior notification and agreement of ministers.

During July EDF, which has a majority stake in the plant, gave final approval for Hinkley Point C, but the government stepped in just hours later to review the project specifics.

Secretary of State for Business, Energy and Industrial Strategy, Greg Clark said: “Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the Government’s agreement.

“Consequently, we have decided to proceed with the first new nuclear power station for a generation.”

EDF said it was "delighted" by the government's decision.

"The approval of this construction project for two nuclear reactors on the Hinkley Point site in Somerset in the South-West of England marks the conclusion of ten years of preparation and rigorous planning. It will benefit from the joint strengths of the British and French nuclear industries, and will lead to the creation of 25,000 job opportunities on the site during construction, and will offer numerous opportunities for local and national businesses," a company statement said.

Members of the UK nuclear industry have also welcomed the announcement, describing it as a “major boost” for the sector.

“The Prime Minister’s decision to agree to the Hinkley Point C contract is welcome news for the UK’s nuclear supply chain who are ready to deliver this important national infrastructure project, providing reliable, constant electricity as part of a balanced mix for the future,” said Tom Greatrex, chief executive of the Nuclear Industry Association.

“The positive industrial impact of this project will be enormous with contracts already in place for Welsh steel, pumps made by Scottish companies and nuclear components from across England’s industrial belt,” Greatrex added.

Manufacturers’ organisation EEF also welcomed the decision, but was cautious in suggesting the deal offers value for money.

“If new nuclear is to continue to play a major role, we must see significant reductions in strike prices for future projects,” said Claire Jakobsson, head of climate, energy and environment policy at EEF.

“With such a large amount of subsidy going into this project, it is essential that the government ensures the opportunities for the UK economy are maximised, particularly for manufacturers,” Jakobsson added.

Meanwhile, the Confederation of British Industry (CBI) said Hinkley Point is good news for the UK’s energy future, and called on government to further prove to “hungry investors” the UK is open for business.

“Pressing ahead with major infrastructure decisions…would give a real boost to [investors’] confidence in the UK in the long-run,” said Josh Hardie, CBI deputy director-general.

However, leaders within the renewables sector have dismissed the decision to press ahead with Hinkley as a “bad move”.

“It will take at least a decade to build and leave our grandchildren an inheritance of high energy costs, hazardous waste, security worries, and a plant that needs complex and costly decommissioning,” said Juliet Davenport, chief executive of renewable energy company Good Energy.

“No wonder only 36% of the British public support nuclear, compared to a whopping 76% for renewables.

“The same future generations that will blame us for Hinkley, could instead thank us for a legacy of investment in renewables,” Davenport added.

Meanwhile, environmentalist group Greenpeace also dismissed the announcement, saying it is “unlikely to be the grand finale to this summer’s political soap opera”.

Greenpeace executive director John Sauven said: “There are still huge outstanding financial, legal and technical obstacles that can’t be brushed under the carpet. There might be months or even years of wrangling over these issues. That’s why the government should start supporting renewable power that can come online quickly for a competitive price.”