SPECULATION is mounting that EDF Energy's investment plans for the Hinkley Point C project have been delayed until April next year at the earliest.

The news comes in the same week as the French energy giant and its partner Areva won approval for the design of the two pressurised water reactors proposed for Hinkley C.

The joint approval from the Office for Nuclear Regulation and the Environment Agency is the first such permission for new nuclear reactors in the UK for 25 years.

On Wednesday, the Planning Inspectorate's National Infrastructure Directorate also made its recommendation to the Government on whether planning permission should be given for Hinkley C to be built.

However, the recommendation will not be made public and it will now be up to the Secretary of State to decide whether permission should or should not be given.

He has until March to either confirm or refuse a development consent order for Hinkley C.

Even if permission is given, nothing will be built unless EDF financially commits to the development.

The firm, which also owns Hinkley Point B, has consistently said it would seal the deal either way by making an announcement on its financial commitment to the new-build Hinkley C nuclear power station project "before the end of the year".

Now rumours are rife that the announcement has been put on ice with the company choosing its words carefully on the issue.

A spokesman for EDF said a final investment decision would now take place "at the earliest possible date".

He said the firm remained committed to building two new nuclear reactors at Hinkley and added: "Our objective is to have all the components in place around the end of the year to allow a final investment decision at the earliest possible date."

EDF has made no secret of the need for the Government to make new nuclear power station developments financially viable through some form of cash incentive, most probably through the impending Energy Bill.

There have also been widespread rumours that its main funding partner in the Hinkley C project, Centrica, could pull out in the new year.

Centrica is believed to have already spent much of its project funding and is widely believed to be preparing to pull out of the UK nuclear new-build market in favour of USA-based projects.

But EDF's chief executive Vincent de Rivaz remained buoyant and welcomed the approval of its reactor design as a "milestone" for the Hinkley C project.

"It represents four years of hard work and allows our project to have a stable design before we start, offering a huge boost for the predictability of costs," he said.

"It highlights our credibility and that of the EPR design, as well as demonstrating that the UK has a credible policy and regulatory framework in place."

Mr de Rivaz also reiterated the need for continuing talks with the Government and said the final investment decision for the project would take place "at the earliest possible date".

He added: "Not only has design acceptance for the UK EPR been delivered to the deadline agreed over a year ago, the cost assessments for the reactor which we have provided to Government remain unchanged."

An EDF spokesman said it had taken 85,000 hours of engineering studies over four years to come up with a suitable reactor design which met the UK's stringent safety requirements.

Robert Davies, chief executive of Areva UK, said: "This opens the way for the new nuclear age in the UK.

"After four years of the most intense scrutiny by the UK's independent regulators, they have confirmed that the EPR has met its rigourous requirements for design acceptance."

EDF insisted the Hinkley C project remained "shovel ready" having already been granted a nuclear site licence and with site preparation works already well underway.

Meanwhile, the Local Government Association's New Nuclear Local Authorities Group (NNLAG) - which includes West Somerset and Somerset County Council as members - this week said more needed to be done by the Government to ensure communities affected by such developments were properly compensated.

The group welcomed the Government's pledge to ensure benefits for communities hosting large-scale developments such as new nuclear power stations on the day the Government's Energy Bill was due for a second reading in the House of Commons.

Cllr David Hall, chairman of NNLAG and deputy leader of Somerset County Council, said: "The bill provides a clear signal that Government is committed to putting the necessary mechanisms in place to keep the UK's lights on and it is hoped that this will help bring greater clarity and certainty to all those council areas that are being asked to host new nuclear power stations.

"The Hinkley Point C project, in particular, is at a very critical juncture and progress is therefore welcome.

"The host authorities believe that it is critical that we do not lose sight of the commitments Government has made, via the National Infrastructure Plan, to clearly map out community benefit mechanisms in relation to new nuclear builds.

"There is still a lack of clarity on these matters and we will be continuing to pursue this with the relevant Government departments over the coming weeks."