Delayed nuclear deal faces inquiry [View all]

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Source: Telegraph

The National Audit Office has opened the door to an investigation into any agreement between EDF Energy and the Government over building the £14bn Hinkley Point nuclear plant.

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Mr Morse, who produced a report into the Government’s energy policy last year, said: “I expect to follow up my earlier memorandum with further reviews to support parliamentary scrutiny of the Government’s implementation of its energy policy and in particular I will consider the case for a review of the negotiation of the Hinkley strike price if one is agreed.

“If the Government reaches agreement with EDF an audit could review the process and outcome of the negotiations and whether they have secured value for money.” This could “inform the continued management of the contract” and “provide lessons for future negotiations” of the so-called “contracts for difference”.

EDF said it wants a contract that may be amended to protect it from “events outside of its control” that could have a significant impact on costs. It also said it is vital that any deal is protected against a future political change of heart.

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Read more: http://www.telegraph.co.uk/finance/newsbysector/energy/10007825/Delayed-nuclear-deal-faces-inquiry.html