THE boss of Hinkley C developer EDF Energy said this week he remained committed to the project but warned "further progress" still needed to made with the Government over the funding of the nuclear industry.

Speaking before the Energy and Climate Change Committee, EDF chief executive Vincent de Rivaz said the firm had an 800-strong "shovel-ready" workforce ready to start work on a new nuclear power station at Hinkley Point.

But before any work could begin, EDF still had to make a final financial commitment to the scheme - with that decision promised before the end of the year.

Mr de Rivaz said EDF was still on course to make its final investment decision before Christmas, but said the decision and the very future of Hinkley C depended on the outcome of Government plans to overhaul investment in the energy industry.

"We are on the brink of delivering an infrastructure project similar in scale to the London Olympics.

"We are poised to deliver immense benefits in terms of jobs, skills and economic growth – locally and nationally.

"But like all investors in capital intensive infrastructure projects we need to have a compelling business case.

"In this respect our final investment decision requires more progress to be made.

"The Secretary of State has made clear publicly that he is committed to making progress, with the second reading of the Energy Bill before Christmas," Mr de Rivaz said.

EDF has already welcomed the draft terms of the Government's Energy Bill, which was published earlier this year.

The Bill aims to encourage major investment in cleaner energy generation by setting out incentives for developments in both the nuclear industry and offshore wind farms - both sectors which require huge upfront 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 - known as Contracts for Difference (CfD) - 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 the Government's plans to boost clean energy production to help hit its target of reducing carbon dioxide emissions by 80 per cent by 2050.

Mr de Rivaz told members of the Energy and Climate Change Committee that nuclear energy had a vital role to play in the UK's future low-carbon energy mix.

But he said all sides had to be realistic about long-term prices and the significant funding needed to improve the country's energy infrastructure.

Mr de Rivaz said: "We are engaged with the Department of Energy and Climate Change on an intensive process to review our costs, the project risks and delivery arrangements and to define transitional arrangements.

"The CfD will reveal the cost competitiveness of nuclear with all other low carbon technologies. Nuclear is the best low carbon choice for consumers.

The CfD will be a simple, transparent and proven instrument. It will deliver a fair and balanced outcome for investors and customers.

"The transitional arrangements will give legally robust foundations, well in advance of Royal Assent of the Energy Bill, for the certainty we and our partners need to decide to invest."

There are still concerns EDF could get cold feet if the final version of the Bill is not financially favourable towards nuclear power.

Precise details of how the long-term contracts would work have not yet been made public and critics have claimed they could be far 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.

Mr de Rivaz added: "The reality is clear. We have workers in high-visibility jackets, standing ready to go to work on our site.

"The responsibility now is on the Government and us to deliver the CfD and transitional arrangements, the framework to make it possible for our project to move to the next stage around the end of the year."