The ability of EDF, the French utility, to fund the £18 billion Hinkley Point C nuclear power plant has been thrown into further doubt after reports suggesting that CGN, its Chinese partner, would shoulder a smaller-than-expected amount of financial risk. Despite having a 66.5 per cent stake in the project, EDF would assume a higher proportion of the liabilities associated with costs overruns or delays, according to Le Journal du Dimanche. The French newspaper cited a note by Thomas Piquemal, EDF’s former chief financial officer, to the company’s audit committee regarding the project, which is mired in controversy on both sides of the Channel. The note is understood to state that, in the case of a 5 billion euro cost overrun, EDF would be liable for 80 per cent of the additional costs. Should the project be delayed by six months, the state-controlled French group would have to refund hundreds of millions of euros to CGN. A payment of 1.6 billion euro would also be payable to EDF’s Chinese partner in the event that the Austrian government succeeds in its complaint to the European Commission over what it regards as illegal state aid for the project. Mr Piquemal quit this month, apparently believing that Hinkley Point C could put the whole of EDF’s finances at risk. He became the second senior resignation at the French group, after the departure of Chris Bakken, the project director, last month.
Times 28th March 2016 read more »
French utility EDF has agreed to shoulder part of Chinese partner CGN’s financial risks should there be delays or cost overruns in the Hinkley Point nuclear project in Britain, weekly Le Journal du Dimanche reported. The newspaper cites a note by former chief financial officer Thomas Piquemal to the EDF board’s audit committee regarding the 18 billion pound project. The notes says in the case of five-billion-euro cost overrun, EDF would have to finance 80 percent of it, despite having a 66.5 percent stake in the project.
Reuters 27th March 2016 read more »