A scathing report by a powerful House of Lords committee has slamming Hinkley Point’s nuclear plant as “risky”, and said that the Government must prioritise energy security.
The Committee’s Chair Lord Holick said the Hinkley Point nuclear plant was unlikely be delivered on time, and that with 7% of the UK’s capacity on the line, the country must look at a “plan B”.
“Hinkley Point C is a good example of the way policy has become unbalanced and affordability neglected. It does not provide good value for money for consumers and there are substantial risks associated with the project,” he said.
The cost of the project is estimated to be £30 billion to consumers, and will produce electricity at £92.50 per megawatt hour – which is 55% higher than coal-fired and gas power plants in the UK.
The scathing assessment comes after reports that EDF, the French company behind the Hinkley Point development, is facing €37 billion in debt and may be forced to seek a bailout from the French Government.
The Lords Economic Affairs Committee, whose membership includes two former Chancellors, also said that the Government must ensure “the security of the UK’s energy supply is the priority of its energy policy”.
The report said that the Government’s pursuit of climate change targets had prioritised decarbonisation ahead of energy security and those targets should be “managed flexibly”.