ANOTHER major stumbling block looks set to be overcome in the bid to build Britain's first new nuclear power station in a generation at Hinkley Point near Stogursey. The European Commission has been investigating whether developer EDF Energy's Government funding deal for Hinkley C is legal. A decision is expected in the coming weeks, but in a surprise move, a spokesman for a key European Commission figure confirmed on Monday that the deal would be recommended for approval. Antoine Colombani, a commission spokesman for competition and for vice-president Joaquin Almunia, said: "Our discussions with the UK authorities have led to an agreement. "On this basis, vice-president Almunia will propose to the college of commissioners to take a positive decision in this case "In principle a decision should be taken within this mandate." A spokesman for EDF Energy welcomed the announcement. "Confirmation that vice-president Almunia recommends that the College of Commissioners approve the agreement on Hinkley Point C is another positive step forward for this vital project," the spokesman said. She said the agreement between the UK Government and EDF was fair and balanced for consumers and investors alike. She added: "The state aid investigation has been rigorous, robust and thorough and we expect that the College of Commissioners will recognise this. "Hinkley Point C is an important project which will deliver Europe-wide objectives, offering the prospect of reliable, secure and low carbon electricity for many decades to come as well as boosting jobs and skills." Hinkley C was granted a development consent order by the UK Government at the end of March last year. Site preparation works began again in spring this year after the Government agreed to guarantee a price for electricity generated from the plant. However, work on the station itself remains in doubt pending the outcome of the European Commission investigation into the electricity price deal. Critics claim it amounts to illegal state aid as EU rules forbid Governments from subsidising nuclear power. Green MEP for the South West, Molly Scott Cato, said she was furious the EU looked set to approve billions of pounds of public funding for Hinkley C. She said she had met Mr Almunia and was shocked and disturbed that concerns raised over the deal had apparently been ignored. "Greens have always maintained that the contract with EDF, offering a strike price for its electricity of £92.50 per MWh – roughly twice the current wholesale price of power – as well as state credit guarantee of £10bn, are illegal state aids which breach European market rules. "The rules on fair competition are perfectly clear but can apparently be ignored when there is a political deal to be made," Dr Scott Cato said. But anti-nuclear campaigners from pressure group Stop Hinkley said a final decision had yet to be made and warned that a decision in EDF's favour could well be challenged in the courts. Spokesman Allan Jeffrey said the deal was "economically bonkers". "It will lock consumers into paying about twice the going rate for electricity until almost 2060 while the cost of renewable energy is falling rapidly. "It would be hard devise a worse deal for consumers or tackling climate change if you tried," he said. EDF has already successfully fought off two judicial reviews on its plans for Hinkley C, one from environmental group Greenpeace and the other from the Irish National Trust. If approval is forthcoming from the European Commission as expected in the next few weeks, the next step will be for EDF to finalise a funding package for the power station.





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