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28 Jul 2016

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Hinkley C: NOT (yet) a done deal

“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.

Contracts were to be signed on Friday.

But Business Secretary Greg Clark has said the government will “consider carefully” before backing it.

According to reports, EDF’s chief executive Vincent de Rivaz has cancelled a trip to the UK on Friday following Mr Clark’s comments.

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.

EDF still hopes to have more than 2,500 workers on site by next year.
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. …”

http://www.bbc.co.uk/news/business-36903904

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East Devon Watch

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28 Jul 2016

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Devolution, Hinkley C, Local Enterprise Partnership

Hinkley C: if it brings 5,000 jobs, where are the other 20,000 promised by the LEP coming from?

On Spotlight tonight, the spokesperson for Hinkley C said that it would bring 5,000 jobs to the Devon and Somerset area (presumably mostly in Somerset).

However, our LEP says:

“Hinkley Point C will see investment of by EDF of £20m in training, education and skills in the Heart of the South West. By the time the project is completed, we expect to see 25,000 new employment opportunities with 5,600 people and 400 apprentices employed at its peak. Over the lifetime of the project, over £2bn will go into our area’s economy.”

Click to access Non-tech%20summary%20-%20FINAL.pdf

How do these numbers stack up – 25,000 jobs but 6,000 at its peak? What happens to the other 19,000 jobs? Zero hours? Or is it 19,000 people doing education, training and skills for 5,000 jobs!!!

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East Devon Watch

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28 Jul 2016

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Accountability, Hinkley C

EDF board member resigns as company expected to vote to construct Hinkley C

“A board member of the French energy giant EDF has resigned ahead of a vote to give the green light to construction of the controversial Hinkley Point nuclear power station in Somerset.

Gerard Magnin, one of 18 board members, quit today saying that the £18bn project is too financially risky for EDF and will divert France away from investment in renewable energy.

Is support for Hinkley nuclear plant Philip Hammond’s first bad move?
The resignation of Magnin, who has a background in alternative energy, is not expected to derail EDF’s approval for the project today.

But it signals growing doubts about Hinkley Point and the financial capacity for EDF to deliver the UK’s first new nuclear power station in 20 years.

The firm’s chief financial officer, Thomas Piqemal, resigned in March over the project, saying it would jeopardise EDF’s financial situation.

“As a board member proposed by the government shareholder, I no longer want to support a strategy that I do not agree with,” Magnin wrote in a letter to EDF chief executive Jean-Bernard Levy which has been seen by Reuters.

EDF is listed on the French stock exchange but the French state retains an 81 per cent stake.

When the project to build a state-of-the art European Pressurized Reactor (EPR) on the Somerset coast was originally outlined in October 2014 EDF was only supposed to take a 50 per cent stake.

The rest was supposed to be financed by Chinese state companies and another majority state-owned French-nuclear engineering firm Areva.

But Areva has subsquently stumbled financially and its nuclear unit has been absorbed by EDF. And the Chinese have said they will fund no more than a third of the project, leaving EDF to finance 66 per cent of Hinkely Point.

Since January 2015 EDF’s share price has fallen by 50 per cent and its market capitalisation is just €22bn, less than the entire Hinkley Point project value.

The company, which has €37.4bn of debt, also needs to spend €50bn to upgrade its French nuclear plants over the next decade.

“Let’s hope that Hinkley Point will not drag EDF in the same abyss as Areva” said Magnin in his letter.

EDF unions have six seats on the board and have suggested they might vote against the Hinkley Point investment, arguing that it could jeopardise the company’s future.

The Hinkley Point reactor is also controversial in the UK as the UK government has agreed to buy electricity from the plant for 35 years at a price that is more than twice current market rates.”

http://www.independent.co.uk/news/business/news/edf-hinkley-point-c-nuclear-power-station-vote-decision-latest-news-energy-a7160151.html

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East Devon Watch

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28 Jul 2016

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County councillors, Cranbrook

Cranbrook: what can happen when you are tied to one district heating energy supplier

From the Cranbrook Town Council Facebook page:

“E.ON ENERGY SERVICE CHARGE
Your Town Council recently brought a matter to the attention of E.ON that their annual energy service charge not changing other than by inflation contradicts the residents’ Customer Supply Agreement. Following our initiative, E.ON have now reviewed what the residents have been charged up until 31 March 2016, against what they would have been charged up to the same date, had they priced your energy service charge in line with inflation. We understand that residents will receive a letter stating how much has been credited to their Heat account and if you are affected by this you will receive a credit on your account in July.”

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East Devon Watch

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28 Jul 2016

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Austerity cuts, Claire Wright, East Devon economy, Inequality

Claire Wright acts quickly on Lloyds Bank closures

Although Claire Wright is appealing on behalf of Ottery St Mary, this could equally apply to all the smaller towns of East Devon:

“Following the devastating news this morning about Lloyds Bank proposing to axe 3000 jobs and close 200 branches I have written to the bank’s chief executive, Antonio Osorio…….

Dear Mr Osorio

I was dismayed to read the news this morning about your decision to close 200 branches of Lloyds Bank with a loss of 3000 jobs.

I realise that this must have been a horribly difficult decision to make as it will cause much hardship for your staff and for the communities where branches are closed.

I felt I must write straightaway however, to implore you not to shut our Lloyds branch here in Ottery St Mary.

Ottery’s branch is the only bank now left in the town, which has a population (including nearby villages) of around 10,000. Hundreds of new houses are given planning consent and will be built in the coming months and years.

I know from talking to local people and traders that they really value your bank and whenever I pass it, it always seems busy.

The town’s traders unsurprisingly are finding things tough during these difficult times and several businesses have closed in recent times. If Lloyds closed here it would make things harder for them, as they would need to take a 10 mile round trip to either Sidmouth or Honiton to do their banking, potentially several times a week.

Ottery also has a large proportion of elderly people, many of whom do not have their own transport. I know that many elderly people living here rely on being able to bank in the town. Closing it would mean a 10 mile round trip on public transport. Fine for a fit person but potentially very hard for someone who is not in the best of health or who is infirm. Elderly people would be very disadvantaged by such a decision.

I realise that wherever you close branches people will be upset, but I would urge you to keep Ottery’s branch open for the reasons above.

Kind regards

Best wishes
Claire

Mr Osorio’s email address is antonio.osorio@lloydsbanking.com – please drop him a line urgently if you can, saying how much Lloyds means to you and what it would mean to you if lost!

http://www.claire-wright.org/index.php/post/lloyds_bank_chief_executive_urged_to_retain_otterys_branch_in_face_of_cuts

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East Devon Watch

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28 Jul 2016

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Hinkley C

American view on Hinkley C: “a radioactive white elephant”

“… Under the terms of a deal struck in 2013, British electricity customers will fund large guaranteed payments to EDF for 35 years in return for the French utility shouldering much of the construction risk for Hinkley Point. Because of lower projections for future wholesale electricity prices these subsidies are estimated to have risen to a staggering 30 billion pounds.” …

http://www.bloomberg.com/gadfly/articles/2016-07-27/france-and-edf-should-scrap-hinkley-point-british-nuclear-plan