This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-36903904

The article has changed 13 times. There is an RSS feed of changes available.

Version 11 Version 12
Hinkley Point: New hitch for UK nuclear plant deal Hinkley Point: Surprise delay for nuclear plant deal
(35 minutes later)
Plans to build the first new UK nuclear plant in 20 years have suffered an unexpected delay after the government postponed a final decision until the early autumn.Plans to build the first new UK nuclear plant in 20 years have suffered an unexpected delay after the government postponed a final decision until the early autumn.
French firm EDF, which is financing most of the £18bn Hinkley Point project in Somerset, approved the funding at a board meeting.French firm EDF, which is financing most of the £18bn Hinkley Point project in Somerset, approved the funding at a board meeting.
Contracts were to be signed on Friday.Contracts were to be signed on Friday.
But Business Secretary Greg Clark has said the government will "consider carefully" before backing it.But Business Secretary Greg Clark has said the government will "consider carefully" before backing it.
EDF chief executive Vincent de Rivaz has cancelled a trip to Hinkley Point on Friday following Mr Clark's comments.EDF chief executive Vincent de Rivaz has cancelled a trip to Hinkley Point on Friday following Mr Clark's comments.
Critics of the plan have warned of environmental damage and potential escalating costs.Critics of the plan have warned of environmental damage and potential escalating costs.
They are also concerned that the plant is being built by foreign governments. One third of the £18bn cost is being provided by Chinese investors.They are also concerned that the plant is being built by foreign governments. One third of the £18bn cost is being provided by Chinese investors.
Analysis: Simon Jack, BBC business editorAnalysis: Simon Jack, BBC business editor
Hours after EDF's board voted to approve the £18bn power plant on Thursday, the government launched a further review of the project.Hours after EDF's board voted to approve the £18bn power plant on Thursday, the government launched a further review of the project.
This stunning new development came all the way from the top of government and the timing seemed calculated to cause maximum impact.This stunning new development came all the way from the top of government and the timing seemed calculated to cause maximum impact.
EDF executives were taken completely off guard, the post-Brexit run of major investment is abruptly halted and what precious entente cordiale in Anglo-French relations there is left after the EU referendum result seems diminished.EDF executives were taken completely off guard, the post-Brexit run of major investment is abruptly halted and what precious entente cordiale in Anglo-French relations there is left after the EU referendum result seems diminished.
Is it a genuine pause for a new government to read the small print of a project that is two administrations old, or a signal of a potential change in policy?Is it a genuine pause for a new government to read the small print of a project that is two administrations old, or a signal of a potential change in policy?
Simon Jack: Hinkley delay is a high stakes betSimon Jack: Hinkley delay is a high stakes bet
EDF still hopes to have more than 2,500 workers on site by next year. Tom Greatrex, the chief executive of the Nuclear Industry Association, urged the government to make a decision as soon as possible.
Announcing the approval of investment earlier, EDF described the plant as "a unique asset for French and British industries", saying it would benefit the nuclear sectors in both countries and would give a boost to employment. "We need to get on and do this and that's why I'm hoping the government make their decision very soon because if it goes on for a lengthy period of time we are going to run the risk of having real problems in terms of our energy supplies," he said.
The announcement was immediately welcomed by employers' group the CBI, the Nuclear Industry Association and engineering workers' union GMB. "Then what happens is that we end up paying a lot more and we end up paying for much more dirty power which we can't afford to do if we are to meet our climate commitments."
Ahead of the vote on whether to approve the Hinkley project, an EDF board member, Gerard Magnin, resigned, saying the project was "very risky" financially. Claire Jacobson, head of climate, energy and environment policy at the EEF manufacturers' organisation said the government's decision was "yet another blow to a decision that has been hindered by many delays and uncertainties".
Earlier this year, EDF's finance director, Thomas Piquemal, had resigned amid reports he thought Hinkley could damage EDF itself.
Cost warningCost warning
Hinkley Point C is expected to provide 7% of the UK's total electricity requirement.Hinkley Point C is expected to provide 7% of the UK's total electricity requirement.
The project has been hit in recent months by concerns about EDF's financial capacity. Announcing the approval of investment on Thursday, EDF had described the plant as "a unique asset for French and British industries", saying it would benefit the nuclear sectors in both countries and would give a boost to employment.
However, the project has been hit in recent months by concerns about EDF's financial capacity.
Despite the Chinese investment, Hinkley Point would remain an enormous undertaking for the stressed French company, which has had to raise money from its owners.Despite the Chinese investment, Hinkley Point would remain an enormous undertaking for the stressed French company, which has had to raise money from its owners.
Earlier this week, EDF shareholders approved plans to issue new shares to raise €4bn (£3.4bn) to help pay for the project.Earlier this week, EDF shareholders approved plans to issue new shares to raise €4bn (£3.4bn) to help pay for the project.
The French state, which owns 85% of EDF, will buy €3bn worth of new shares in the fundraising. Ahead of Thursday's vote on whether to approve the project, an EDF board member, Gerard Magnin, resigned, saying the project was "very risky" financially.
But Mycle Schneider, who used to advise the French government on nuclear and environmental issues, told the BBC that neither the state nor the company were fully on board. Earlier this year, EDF's finance director, Thomas Piquemal, had resigned amid reports he thought Hinkley could damage EDF itself.
"There is now a large front inside EDF, inside the nuclear establishment in France, advising against the construction because the sheer size of it could put not only the company EDF at risk, but this could actually put the whole state finances at risk."
The project has many critics in Britain too.
"The price of every other form of energy is falling. That includes gas, which is plentiful and wind and solar are both coming right down in price," Nick Butler, visiting professor and chair of King's Policy Institute at King's College London, told the BBC.
"We should step back and review it. The danger of what we are getting into is that are now locked into a very high price for a very long time."
Ahead of Thursday's vote, EDF had said Hinkley Point was a "unique asset for French industry as it would benefit the whole of the nuclear industry and support employment in major companies and smaller enterprises in the sector".
'Too big to fail''Too big to fail'
Although French unions are urging the company to push back the decision until the company is in a better financial position, UK unions - including Unite and GMB - have welcomed the project. Environmentalists are also concerned about the plan. Greenpeace executive director John Sauven said: "Countless experts have warned that for British families this power station will be terrible value for money.
Environmentalists are concerned about the plan. After the announcement about the go-ahead, Greenpeace executive director John Sauven said: "Countless experts have warned that for British families this power station will be terrible value for money." He added that EDF's decision to go ahead with the investment, "doesn't prove the UK is open for business post-Brexit - it just shows the Hinkley deal became too big to fail in the eyes of British and French politicians".
He added: "Today's decision doesn't prove the UK is open for business post-Brexit - it just shows the Hinkley deal became too big to fail in the eyes of British and French politicians." The campaign group added that more investment was needed for renewable energy such as offshore wind.
The campaign group added that more investment was needed for renewable energy like offshore wind.
Hinkley Point timelineHinkley Point timeline
Jan 2006 - Government proposes nuclear as part of future energy mixJan 2006 - Government proposes nuclear as part of future energy mix
Mar 2013 - Construction of Hinkley Point approvedMar 2013 - Construction of Hinkley Point approved
Oct 2013 - UK government agrees £92.50 per megawatt-hour will be paid for electricity produced at the Somerset site - around double the current market rate at the timeOct 2013 - UK government agrees £92.50 per megawatt-hour will be paid for electricity produced at the Somerset site - around double the current market rate at the time
Oct 2015 - EDF signs investment agreement with China General Nuclear Power Corporation (CGN)Oct 2015 - EDF signs investment agreement with China General Nuclear Power Corporation (CGN)
July 2016 - EDF board approves final investment decision, but the UK Government postpones a final decision on the project until autumn.July 2016 - EDF board approves final investment decision, but the UK Government postpones a final decision on the project until autumn.