The EU approval of the nuclear development at Hinkley Point marks an important, if not decisive, chapter in the story of new nuclear in the UK. There are still legal challenges to be overcome and a financing package to be finalised within the constraints set by the EU ruling but this is a good moment to identify winners and losers.
The obvious losers are the UK’s consumers who are trapped into paying a price for electricity that is double the current wholesale price for 35 years after the plant starts up. The deal will go down in history, alongside the privatisation of the Royal Mail, as an example of the inability of the British government – ministers and civil servants alike – to negotiate complex commercial deals. The phrase “rolled over” will enter the French language and be accompanied always with a Gallic smile. Still, one should recognise talent and so chapeau to the French negotiators. Read more