HINKLEY C developer EDF Energy has welcomed this week's publication of the Government's long-awaited Energy Bill, which aims to encourage major investment in cleaner energy generation.

EDF said the proposals outlined in the bill were crucial for investment in low carbon initiatives, with nuclear power having a key role to play.

There had been fears EDF could get cold feet if the bill was not favourable towards nuclear power, while its funding partner Centrica might also pull out of the Hinkley C deal.

EDF said both companies would make a "final investment decision" at the end of the year.

A spokesman for EDF said: "The reforms pave the way for a balanced deal for all parties.

"They will deliver competitively priced energy for customers, security of supply for policy makers and a stable return for investors.

"New nuclear has a vital role in a balanced mix. It will help meet the UK's goals for climate change, security of supply and affordability.

"It is the most affordable large scale, low carbon choice. It represents billions of pounds of investment that will create thousands of new jobs and provide a major boost to local communities."

The Energy Bill is seen as vital for the future of the Hinkley C project, as it sets out incentives for developments in both the nuclear industry and offshore wind farms - both sectors which require huge up-front expenditure.

In the European Union it is illegal to offer state subsidies for nuclear plants and the bill outlines proposals for new 'long-term contracts'.

The contracts would see a percentage of consumers' energy bills being paid directly to power stations to ensure a reliable supply of electricity to meet demand.

Critics claim it will result in higher home electricity bills and is nothing more than a way of getting around the strict EU subsidy laws.

But the Government maintains bills would be even higher if the UK was unable to move away from its reliance on imported gas.

Nuclear power is a key factor in Government's plans to boost clean energy production to help hit its target of reducing carbon dioxide emissions by 80 per cent by 2050.

Energy Secretary Ed Davey denied the contracts amounted to public subsidies for new nuclear plants and warned: "There will be no blank cheque for nuclear - unless they are price competitive, nuclear projects will not go ahead."

But EDF seemed suitably buoyed by the bill and said details of the new contracts - known as the Contract for Difference - would enable it to "move ahead with plans at Hinkley Point".

EDF Energy chief executive Vincent de Rivaz said the company was on track to deliver.

"Our job is to keep focused on the delivery of our new nuclear plans at Hinkley Point.

"Over the coming weeks and months, our priority is assembling the right project, building a clear view on cost and timetable and agreeing a fair deal with Government.

"Nuclear must be competitive with other low carbon generation. The Contract for Difference will reflect that requirement," he said.

He added: "I am confident that new nuclear in the UK should and will go ahead.

"A huge amount remains to be done – but we are determined to do it.

"We are absolutely focussed on having a viable business case at the end of the year."

Precise details of how the long-term contracts would work are not included in the bill and some energy suppliers have already criticised the idea, fearing it could prove too complex to implement.

The bill also introduces an Emissions Performance Standard, designed to prevent the construction of new, dirty coal plants and allows for the creation of an independent, industry-financed regulator - the Office for Nuclear Regulation.

EDF is now the only company left in the running to build new nuclear power stations in the UK after German power giants E.On and RWE pulled out.

EDF is also involved in a number of offshore wind farm projects around the UK.