Hinkley C – ‘Strike Price’ Agreed

The Department for Energy and Climate Change has today announced that it has reached agreement with developer, EDF, to pay them £92.50 for every megawatt hour Hinkley Point C generates (The key terms include a “Strike Price” of £89.50 /MWh fully indexed to the Consumer Price Index. This price benefits from an upfront reduction of £3/MWh built in on the assumption that the developer would be able to share the first of a kind costs of the EPR reactors across the HPC and Sizewell C sites. If the EDF Group does not take a final investment decision on Sizewell C, the Strike Price for HPC would be £92.50/MWh).

The full announcement can be found at https://www.gov.uk/government/news/initial-agreement-reached-on-new-nuclear-power-station-at-hinkley

With the agreement of the strike price and the go ahead for the power station, the community benefit package will now go ahead. The Department for Energy and Climate Change announced on 17 July that local communities around Hinkley Point C compensated at a rate of £1,000 per Megawatt for the entire operation of the plant. With Hinkley Point C expected to be in operation for 40 years, this could amount to £128 million in funding. The full announcement by the Department for Energy and Climate Change can be found at https://www.gov.uk/government/speeches/community-benefits-for-sites-that-host-new-nuclear-power-stations-michael-fallon.

(SDC press statement)