Agreements for planned Hinkley Point C nuclear power station approved by the European Commission

08 October, 2014

The European Commission has approved the agreements between EDF Group and the UK Government to build a new nuclear power station at Hinkley Point C in Somerset. Its decision followed a rigorous and detailed examination of the deal during a 12 month investigation by the European Commission.

The proposed agreements are for a long-term contract for the electricity generated at Hinkley Point C and for a guarantee for the project’s debt.

The agreement for Hinkley Point C

The Commission found that the long-term contract (Contract for Difference[i]) and the guarantee constitute an appropriate and proportionate way for the UK to meet its need for secure, low carbon energy. The Commission’s decision leaves the key elements of last October’s agreements unchanged whilst it has reinforced measures designed to share potential future benefits with customers.

  • The “strike price” for Hinkley Point C remains set at £92.50/MWh or £89.50/MWh if the planned power station at Sizewell goes ahead[ii]
  • The contract will last for 35 years
  • The strike price is fully indexed to inflation through the Consumer Price Index
  • The project will be protected from certain changes in law

As proposed in October 2013, the Contract for Difference already contained a series of “gainshare” mechanisms in which customers would benefit if the project construction costs or equity returns were more favourable than forecast. The Commission, the UK Government and EDF have accepted reinforcement of the “gainshare mechanisms” in the package today approved by the Commission.

EDF Energy has also committed that electricity from the proposed power station will be sold at market price and recorded separately from EDF Energy’s other electricity production.

EDF has agreed that the fee for the Government’s proposed Guarantee of project debt be paid at commercial rates.[iii] The agreed guarantee fee delivers the equity return required by investors.

See latest news update for full statement


 A crucial step for Somerset and South West businesses.

“This is another crucial step along the long road to the construction of Hinkley Point C, which will provide millions of pounds of worth of business for Somerset and South West businesses” – Rupert Cox, CEO of the Somerset Chamber of Commerce.

To find out more about what this decision means for the local economy, click here.


Local supply chain perspective:

EDF Energy plans to invest in a multi-billion pound project in Somerset over the next decade. Approximately one-third of the investment is planned for the nuclear reactor island, with the remaining two-thirds required for associated construction and civil engineering works, as well as aligned activity such as business services.

As part of its procurement strategy for Hinkley Point C, EDF Energy has partnered with the Somerset Chamber of Commerce to identify and support local businesses that want to become part of the supply chain. The Somerset Chamber is the first point of contact for local business and agencies wishing to engage in the construction of this proposed nuclear new build project. This website forms the central resource for all Somerset businesses who wish to make the most of the opportunities arising out of the development.

This website will enable your company to:

  • Register your interest in supplying the project by completing a short online form. Your capabilities will then be made available to EDF Energy and interested Tier 1 contractors.
  • Update your company details as your company develops its capabilities and standards.
  • Keep abreast of the latest developments including build schedules and contracts out for tender.
  • Access a library of reference material and training documents.
  • Find information and contact details for business support partners that will help you meet the quality and safety standards required.
  • Engage with others on technical and business training events and information days designed by the Chamber and its partners to help local businesses get ‘Hinkley ready’.
  • Meet one-to-one with Tier1 contractors for the Hinkley Project through a series of Meet the Buyer events.

Businesses located outside the Somerset local area, including those with operations in the south west and the rest of the UK,  EDF Energy may be interested in the supplier portals for the proposed new build at Sizewell in Suffolk . Please click here to access this site.

Click image below to see what Hinkley Point C will look like when complete.








Click image below to watch a video showing some of the key people and organisations involved in the early stages of planning for the new nuclear power plant at Hinkley.







Support from the Somerset Chamber

The Somerset Chamber of Commerce has been appointed by EDF Energy as the first point of contact for Somerset and South West businesses wishing to engage in the construction of the proposed nuclear new build project at Hinkley Point C. The Chamber is the hub of business influence for Somerset and is leading on a number of high profile countywide initiatives for business, including full engagement with the Heart of the South West LEP.

To find out more about the Somerset Chamber, please visit www.somerset-chamber.co.uk.

Local Supplier Partnership Opportunities:

Partnerships with Somerset suppliers can bring added value thanks to their local presence and capability, which can be of interest to regional, national or international companies bidding for work packages.
If you are not based in Somerset or the South West, but are interested in finding a local partner, please complete the form on the link below with details about the type of collaboration you are seeking so that we can help to identify potential matches within our local supplier database.

Request for Somerset Partner Suppliers


Key Facts

  • Agreement on commercial terms for planned Hinkley Point C
  • The most significant opportunity for Somerset in a generation
  • A multi- billion pound investment planned for Hinkley Point
  • One-third of the investment is planned for the nuclear reactor island with the remaining two-thirds required for associated construction, engineering works and business services.
  • c.5600 jobs to be created during construction and 900 jobs for 60 years during the operational phase
  • Unique opportunity to benefit globally from the skills knowledge and experience gained from Hinkley Point C.
  • The new build at Hinkley Point C is set to be an international showcase.

Register now

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