SPECULATION is growing that the Government is just days away from agreeing a deal which will help secure the future of the proposed Hinkley C power station near Stogursey.

Although French power giant EDF Energy has planning permission for the development, it has yet to secure a price guarantee from the Government for any electricity generated at the new plant.

EDF has also yet to confirm a financial partner for the multi-billion pound project.

But the company is widely believed to be in talks with the China General Nuclear Group, which could take a 49 per cent share in the Hinkley C project.

And this week Chancellor George Osborne - himself on a trade visit to China - appeared to smooth the way forward when he announced the Government would allow Chinese companies to take a stake in British nuclear power plants.

The news sparked widespread speculation that Hinkley C could become the first "China deal".

Mr Osborne's announcement came as the Prime Minister again warned of the growing risk of power shortages - and revealed visa requirements for Chinese visitors to the UK would be relaxed.

Speaking during a visit to a nuclear plant in southern China, which is itself a collaboration between EDF and the China General Nuclear Power Group, Mr Osborne said: "Today is another demonstration of the next big step in the relationship between Britain and China, the world's oldest civil nuclear power and the world's fastest growing civil nuclear power."

If built, Hinkley C would be the first new nuclear power station since 1995.

But even if the Government does agree an electricity price guarantee with EDF, the deal will still have to be approved by the European Commission as EU State Aid rules make it illegal for Governments to subsidise nuclear power.

EDF is also facing two judicial reviews on its plans for Hinkley C, one from environmental group Greenpeace and the other from the Irish National Trust.