Hinkley Point C nuclear deal contains £22bn 'poison pill' for taxpayer

[bananas]

Source: Guardian

Public left with huge liability for a government closure of power plant before 2060 under UK’s agreement with EDF

The Hinkley nuclear power deal contains a “poison pill” which could leave taxpayers with a £22bn bill if a future UK government closed the plant before 2060, according to an official document seen by the Guardian.

The huge liability shows Hinkley is a “terrible deal” for the UK public, according to critics, with the company also guaranteed three times today’s price for electricity for 35 years. The project has recently been battered by financial warnings and resignations at its prime backer EDF, although on Thursday France’s economics minister, Emmanuel Macron, said that the French state would bail the company out.

The deal the UK government has agreed with EDF, set out in an unpublicised “minute”, commits the British public to pay subsidies of up to about £40bn in real terms and provides state guarantees on nuclear waste disposal and insurance, while allowing the plant to begin producing electricity as late as 2033.

A shutdown that triggers the “poison pill” compensation is not entirely within the control of the UK government but could also be forced by the EU or an international regulator such as the International Atomic Energy Agency, according to the document.

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Read more: http://www.theguardian.com/uk-news/2016/mar/18/hinkley-point-c-nuclear-deal-22bn-poison-pill-taxpayer

[Bad Dog]

1. This is why the "nuclear power is cheaper than green" argument is such horseshit.

It's cheaper for the businessman because the taxpayer always gets stuck with the clean up bill.