Discussions are on-going and no contract has been signed between France and Britain for the replacement of two reactors which are to be retired at Hinkley Point in Somerset.
On the French side there are panic stations at the consequences which could arise if EDF and AREVA fail to deliver on time ! Their history on previous contracts is no comfort. They have not delivered on time and costs have been vastly over budget.
Both companies must be restructured financially. Until yesterday President Hollande was hesitant but now has promised that France will subscribe its share of 85% of a 4 billion Euro increase in the Capital of EDF to be proposed at the General Meeting on May 12, 2016. This permits EDF to continue trading on a sounder financial basis.
There are however, more problems which means that a final decision on the Hinkley Point contract cannot be taken for several months ! Trade Unions, for example, have raised questions which need to be answered. There are certainly also technical problems.
One must also add that the Presidential Election must take place in May 2017 and if François Hollande decides to stand for a second 5 year mandate, according to the Opinion Polls, he would probably not be re-elected !
Should France undertake the Hinkley Point contract ? Macron, the Minister of the Economy clearly wants France to do this. Other Ministers and Experts are more hesitant ! While France dithers, costs rise !
The British Government patiently waits, but for how long ? It should perhaps insist that France should provide cheap electricity if the agreed delivery date is not respected. The longer Britain is obliged to wait, the bigger her crisis could ultimately become !
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