Energy in the news with warning that Somerset council will not step in to take over Hinkley Point C site if power station cannot be finished on time

By Daniel Mumby - Local Democracy Reporter

27th Sep 2022 | Local News

Hinkley Point Nuclear Power Station Complex Near Shurton Google Maps 120421
Hinkley Point Nuclear Power Station Complex Near Shurton Google Maps 120421

A Somerset council will no longer be able to take over the site of a new nuclear power station if it cannot be completed.

EDF Energy is currently constructing the Hinkley Point C complex on the west Somerset coast, with the first reactor due to begin producing energy by the summer of 2027.

Under legal agreements signed before the power station was approved, Somerset West and Taunton Council was given 'step-in rights', where it could take over the site and return the land to its original state if the nuclear facility could not begin generating power by the end of 2025.

But the council has now reneged on these rights, and up to £63m of funding needed to carry out any restatement of the land, claiming that it is "extremely unlikely" these powers or funding will be required.

West Somerset Council approved plans in 2012 to prepare the land for the new power station – before the final approval for the power station itself was given by central government.

As part of this permission, the local council has 'step-in rights', whereby it can take over the site and return the land to its original use if certain conditions are met.

In the case of Hinkley Point C, this would occur where EDF Energy "ceases to be capable" of seeing the construction programme through to its conclusion, or where the power station is not capable of generating any electricity by December 31, 2025.

If, in either of these scenarios, EDF was not able to carry out the work to restore the site itself – for instance, if it went bankrupt – then the council would be able to step in and undertake the work itself.

In this eventuality, guaranteed funds of £63m would be made available as part of a bond created by EDF when the planning consent was given.

The first reactor within the Hinkley Point C site (known as Unit 1) is currently expected to begin generating power by June 2027, while the second reactor (Unit 2) will begin operating around 12 months after that.

Andrew Goodchild, EDF Energy's planning manager, gave assurances to the council's planning committee when it met in Taunton to discuss the issue on September 15.

He said: "Will we complete the project? The answer to that is: absolutely yes.

"I'm happy to say that the project is now more than 50 per cent complete. We've been working for more years now than we expected the project to take, and we are currently employing more than 3,000 local people.

"The consequences of the coronavirus pandemic will be a revised date for when both units will begin generating electricity.

"There can be no doubt about the commitment of our shareholders to the revised date and cost of the project, which will enable us to complete Hinkley Point C.

"It would take a series of significant policy decisions, and arguably new legislation from the UK government, to now stop the project.

"Given what is going on in the world, and the renewed desire for energy security, I think it's fair to say that the need for us to complete the project has arguably never been stronger.

"We are now a world away from the initial position, and the bond no longer serves a useful purpose."

Councillor Mark Lithgow questioned whether it was sensible to keep the bong in the event of EDF running into financial difficulties within the next five years.

He said: "In 2012, when the legal agreements were agreed, it wouldn't have been an unreasonable request to have that bond.

"In the worst case scenario, if EDF goes into liquidation and the government says: 'we're going to change our views, we're not going to back nuclear, we're going to go with solar and wind power', why wouldn't we activate that bond to reconvert the site back to a natural state?"

John Burton, the council's strategic lead officers for nationally significant infrastructure projects, responded: "The government is committed to a full roll-out of nuclear power. There is no chance that this current government is going to renege on that."

Councillor Loretta Whetlor added: "Never say never, because no-one can foresee the future.

"I would hate to see the building [work] stopped now, because whether you like nuclear or not, we need this power station to be completed."

The committee voted to approve the changes by a margin of seven votes to none, with two abstentions.

     

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