Government must re-assess all high cost projects says National Audit Office

“There needs to be a “step change” in the way the civil service does business in the wake of Brexit and other challenges, the comptroller and auditor general has said.

In a speech to the Institute for Government last week, Amyas Morse said the civil service was “over-committed” and should abandon projects that are not “mission critical”.

“We need to ask ourselves, can the public sector deliver Hinckley Point C, a third runway, HS2, a northern powerhouse, nuclear decommissioning, Trident renewal and restoration and renewal of the Palace of Westminster all at the same time?” he asked.

“All these projects are drawing on the same pool of skills and many of these contain optimism bias that they will be able to meet their skills needs at an appropriate cost.”

He suggested that, if the civil service was over-committed, it should stop doing things, either by not commissioning new projects or by cancelling existing ones.

“Prioritising is about making these choices intelligently,” Morse said. “So we need to know how much scarce resource would be released by a particular decision and what consequence that decision would have elsewhere.”

Brexit, he said, was an “abnormal challenge” and brought with it “a completely new layer of unknowns and requirements”.

Existing Whitehall activities were being denuded of capability as civil servants were pulled away to work on aspects of Brexit.

Should Scotland leave the UK – something Morse dubbed “Scoxit” – the civil service would become even more stretched and could grind to a halt under its own weight.

“We will have set civil servants a Herculean task and set them up to fail. And none of us can afford that. I am calling for a step change in the way we manage the activities of government.”

In particular, every Whitehall department will need to carry out a stock take of its interactions with the European Union and new systems and operations put in place to fill the gap left by Brussels.

Brexit would have to be a priority across government and not just in the new Brexit department, he stressed.

“Let’s use this historic juncture to change the way we manage government and plan on a holistic basis so that ministers and civil servants can look across the whole of government activities and decide what is essential and what is not,” he concluded. “This is crucial for achieving value for money.”

http://www.publicfinance.co.uk/news/2016/07/whitehall-must-review-all-projects-free-capacity-eu-exit-says-morse

EDF raided by French authorities

EDF raided by French authorities ahead of Hinkley greenlight

French finance authorities have raided the offices of EDF just days before the state-backed energy giant is expected to give the go-ahead to its controversial Hinkley Point new nuclear project.

The long-awaited final decision on the Hinkley project is scheduled to take place at a board meeting next Thursday, even as authorities in both the UK and France escalate concerns over the costs of the £18bn project.

French investigators from the Financial Markets Authority (AMF) swooped on EDF’s Paris headquarters on Thursday morning as part of a probe into EDF’s disclosure of information to the market. Investigators are said to be concerned about the reporting of its domestic nuclear maintenance costs as well as the plans to develop new nuclear reactors in Somerset.

Local media reports say the AMF recovered a series of documents from the EDF offices and requested a meeting with EDF general secretary Pierre Todorov.

Just hours after the raid the company said it would hold a board meeting on Thursday 28 July to agree a final decision on the project, feeding speculation that the company is preparing to push ahead with the 3.2GW project.

The company also has a scheduled extraordinary general meeting on Tuesday next week, seeking approval from shareholders for its proposed £3bn recapitalistion.

Meanwhile, the head of the UK’s National Audit Office has raised further concerns over the UK’s plans to subside EDF’s plans in the face of a “tidal wave” of pressures from an impending Brexit and a pipeline of existing infrastructure projects requiring a total of £405bn.

Sir Amyas Morse, comptroller and auditor general at the NAO, told the Guardian in an interview that projects such as the Hinkley Point C nuclear plant, a third runway at Heathrow and the ambitious HS2 rail project would have to be reassessed as the government decides which can be done without, according to a report in the Guardian.

“We need to ask ourselves, can the public sector deliver Hinkley Point C, a third runway, HS2, a Northern Powerhouse, nuclear decommissioning, Trident renewal and restoration and renewal of the Palace of Westminster all at the same time?” asked Sir Amyas.

“There is a policy at the moment to have lots of infrastructure projects. I say fine, but some of them will have very big consequences in terms of your ability to deliver your other goals,” he said.

In a recent report, the NAO heaped criticism on the Hinkley Point plans saying the spiralling costs will hit consumers in the pocket, even as other low carbon energy options offer an increasingly better deal.

The subsidy bill to be paid by households and businesses for Hinkley Point has more than quadrupled since the agreement for the new nuclear plant was signed in 2013.

At the time the deal was signed, power price projections had implied a lifetime cost to consumers of £6.1bn for the subsidies. But as of March this year, that had more than quadrupled to £29.7bn due to significant cuts to official power price forecasts.

EDF declined to comment on the raid, and the AMF was unavailable.

http://www.telegraph.co.uk/business/2016/07/22/edf-raided-by-french-authorities-ahead-of-hinkley-greenlight/

Hinkley C: awaiting May’s decision

“… Supposedly the costliest power station on Earth lies like a beached whale on the shores of the Bristol Channel. Whitehall’s department of energy hated it from the start, seeing it not as sensible investment but diplomatic fantasy. The French government, which owns the contractor EDF, is happy to proceed, but only if the soaring cost, now put at £37bn, is guaranteed by future British governments and energy consumers. Accountants working for EDF have run screaming for the hills.

The world of nuclear energy has moved on from these giant 20th-century plants, not one of which has yet been made to work. But the lobbyists have been hard at work: from Weber Shandwick, Bell Pottinger and Finsbury, to the pro-nuclear former minister, John (Lord) Hutton. The cry is always: stop arguing the cost and get building. We don’t want the lights to go out, do we? Someone else will pay.” …

http://www.theguardian.com/commentisfree/2016/jul/21/theresa-may-lobbyists-trident-heathrow-business

“Arms companies charged taxpayer for Xmas parties and charity donations, says defence spending watchdog “

Surely some contracts for Hinkley C will be susceptible to such things?

“Arms companies have padded defence contracts to the tune of £61m with costs including “charitable donations”, Christmas parties and commemorative mugs.

Spending watchdog the Single Source Regulations Office (SSRO) has revealed how defence deals where the contract was not put out to tender have been abused by suppliers, accusing them of failing to meet contract agreements.

The SSRO was set two years ago to crack down on abuse of the £8bn the UK military spends on “single source” deals annually. These are contracts where there is only a single buyer – the MoD – and single supplier because of national security or an urgent need for equipment on the frontline. Once the cost of the contract has been totted up, companies are allowed to make a set profit rate – currently 8.95pc.

The watchdog said it has found examples including suppliers charging £32,500 for a donation to charity, £34,000 for “staff welfare” which include the cost of a Christmas party and £10,000 for “entertaining costs”. Other costs the watchdog is cracking down on include companies charging the MoD to fix their own faulty workmanship and bidding for the deal – even though there was no competition.

Defence procurement minister Philip Dunne has previously cited companies charging £24,000 for ceremonial mugs and £2,000 for a children’s party as other inappropriate costs.

Announcing that its interim compliance report had rated defence contractors as “poor” at following the controls overseen by the SSRO, Clive Tucker, the watchdog’s chairman said: “For too long single-source defence procurement went without effective scrutiny and this is precisely the kind of inappropriate expenditure the Defence Reformed Act was meant to kill off.”

Paul Everitt, chief executive of aerospace and defence trade body ADS, said companies “recognise the SSRO’s role ensuring contracts deliver value for money for the taxpayer and a fair return for industry. Every effort is made to comply with guidance”.

He added: “All companies make every effort to comply with the SSRO’s statutory guidance. All parties are becoming more accustomed to the detailed and complex reporting requirements and each contract is agreed with the MoD following extensive and detailed negotiation.”

http://www.telegraph.co.uk/business/2016/07/13/arms-companies-charged-taxpayer-for-xmas-parties-and-charity-don/

Hinkley C: top-up payments could add £30 bn to the bill

“A government spending watchdog has launched a devastating critique of Hinkley Point C, warning the nuclear project could cost energy consumers £30bn in “top-up payments” due to falling wholesale power prices.

The National Audit Office (NAO) also expressed fears that taxpayers could end up with a range of other payments under debt guarantees agreed by the government with EDF, the French energy group wanting to develop Hinkley.

There could also be potential liabilities for disposing of spent fuel and meeting claims in the event of a nuclear accident, argues the NAO, which says renewables may be a cheaper option.

“Supporting early new nuclear projects could lead to higher costs in the short term than continuing to support wind and solar. The cost competitiveness of nuclear power is weakening as wind and solar become more established,” says the report, entitled Nuclear Power in the UK.” …

http://www.theguardian.com/uk-news/2016/jul/13/hinkley-point-c-cost-30bn-top-up-payments-nao-report

Nuclear south-west

… Referring to study commissioned by the Heart of the South West LEP, he added that the next 20 years is expected to see “up to £50 billion of nuclear-related opportunity” generated in the South West. …”

http://www.plymouthherald.co.uk/booming-nuclear-industry-creating-opportunities-from-plymouth-to-gloucester/story-29504664-detail/story.html

That would be the Heart of the South West LEP where a large number of its Board members – who make the decisions about how to spend millions of pounds in Devon and Cornwall – are in the nuclear industry … and which is in charge of our devolution bid.

Sweet!

“South West to showcase the UK’s £50 billion nuclear opportunity in Westminster”

Well, easy to see why so many members of our LEP who have nuclear interests are spinning this! Anyone notice any declarations of interest here? And it seems without our ever being aware of it, our biggest industry is NOT tourism it’s nuclear energy.

“50 billion worth of business opportunities are up-for-grabs for firms who can provide services for the nuclear industry in the south west. And on Monday 11th July 2016, businesses and representatives from the Government will be able to find out more about how they can play their part at a special event in Westminster.

Taking place in the House of Commons, the event: “The South West – Powering the UK’s Nuclear Future” is being hosted by Bridgwater MP Ian Liddell-Grainger, in whose constituency Hinkley Point C is situated. It features high profile speakers Tom Greatrex, former Shadow Energy Minister and now chief executive of the Nuclear Industry Association, Andrea Leadsom MP, Minister of State for Energy, and Matt Burley, chair of the Nuclear South West Industry Network Board.

The event aims to bring together parliamentarians and south west nuclear industry leaders to set out the economic potential the region has to support the UK energy sector and ensure the Government recognises the unique opportunities that exist in the south west.

Nuclear South West is capitalising on the South West’s unparalleled strength and potential in the global nuclear industry; and generating transformational economic benefits to the UK and regional business community. The facts and figures are:

There will be at least £50billion worth of contracts available to south west companies across 15 projects over the next 20 years in new build, decommissioning and defence.

There are over 180 nuclear companies and organisations in the area, with over 8,000 highly skilled workers;

70% of the UK’s low carbon electricity comes from nuclear power stations; and two new ones are being built at Hinkley Point – creating 25,000 new jobs and £100m to the local economy;

There’s a £1.8bn nuclear defence programme at Devonport in Plymouth; and 44 colleges and training providers are working with Hinkley Point Training Agency.

Matt Burley, Chair of NSW Industry Network Board said: “The future of the nuclear industry in the south west and the scale of financial opportunity that could be unlocked for businesses of different sizes and sectors is enormous.

“We’re working hard to raise awareness and understanding of this opportunity across the region. Businesses are in a fantastic position to take advantage of the national and international nuclear programmes. There are many different services required to support the industry, from equipment suppliers to waste management, and nuclear research facilities to specialist consultancies.”

Ian Liddell-Grainger MP said: “The South West is a global contender in the nuclear energy sector and it offers the potential to create tens of thousands of new jobs and generate billions of pounds for the local and national economy. MPs in our region are committed to supporting and championing the sector. It’s great to see nuclear industry businesses bringing the South West opportunity to Westminster and working with Government to help create the right conditions for growth in the sector – there’s never been a more important time to do this.”

Steve Hindley, Chair of the Heart of the South West Local Enterprise Partnership said: “The South West is the UK’s leading region in the global nuclear renaissance.

“We’re at the ready to claim first-mover advantage in the UK’s nuclear sector, due to the next generation of power stations being started right here at Hinkley Point C. It’s Europe’s largest engineering project, will generate 25,000 new jobs and £14billion investment.

“It’s not just about Hinkley though. There are 15 nuclear opportunities worth £50 billion in this area; so we’re very excited about our cross-LEP & business–led partnership under the banner of Nuclear South West. We urge our Right Honourable Members to join us in showcasing the South West’s unparalleled strength and potential for transformational growth; right here at the nucleus of the nuclear industry.”

West of England LEP chair, Stephen Robertson, said: “The south west is at the forefront of the UK nuclear industry and is leading the way with research and skills training. With over 180 nuclear companies and organisations already in the south west the potential growth and innovation in this sector is huge. Getting nuclear right in the south west will harness the supply chain potential for local companies of all sizes across the south west.”

Dr Diane Savory OBE, Chair of GFirst LEP, said: “The nuclear-based power generation industry has long been a feature of the Gloucestershire economy and we must ensure that the skills infrastructure supports the growth in the economy, by future proofing and meeting the skills needs of businesses affected by workforce displacement to the demands of the nuclear industry.

“Funds from our Growth Deal have been invested in a Gloucestershire centre of excellence in Renewable Energy, Engineering & Nuclear skills (GREEN) in anticipation of the unprecedented expansion of nuclear, low carbon energy, and engineering in Gloucestershire and the South West. The centre will open in September 2017.”

Nuclear South West (NSW) is a partnership between the nuclear industry network in the south west and the stakeholder alliance of the Local Enterprise Partnerships: Heart of the South West, West of England and GFirst; the academic and skills sector and business support agencies.”

http://www.heartofswlep.co.uk/news/south-west-showcase-uk%E2%80%99s-%C2%A350-billion-nuclear-opportunity-westminster

Hinkley C cost has risen to £37 billion

“The total lifetime cost of the planned Hinkley Point C nuclear power plant could be as high as £37bn, according to an assessment published by the UK government.

The figure was described as shocking by critics of the scheme, who said it showed just how volatile and uncertain the project had become given the same energy department’s cost figure of 12 months earlier had been £14bn.

The latest prediction comes amid increasing speculation about the future of the controversial project in Somerset, now beset by worries about whether Brexit financial jitters could further undermine it.

Hinkley has been a flagship energy project for the British government and the chancellor, George Osborne, in particular, who lobbied hard and successfully for China to take a stake in the scheme.

Officials at the Department of Energy and Climate Change (DECC) on Thursday confirmed the £37bn figure but said it was a provisional, set in September 2015 when wholesale power prices were very low and would not affect bill payers. …

“… Critics of the scheme have claimed that the fall in the value of the pound since the referendum vote will increase the costs of the scheme to EDF’s French contractors, who work in higher cost euros. …

… The fall in power prices in the UK and continental Europe that have influenced the latest lifetime cost assessment for Hinkley is also responsible for some of the financial difficulties at EDF.

There have also been suggestions that Chinese investors are becoming more nervous about Hinkley and are demanding more concessions from EDF, so that more Chinese project managers and suppliers are involved. EDF denied this.”

http://gu.com/p/4z5ha

“Hinkley Point C critics try to derail it amid Brexit vote turmoil”

“Britain’s flagship energy project, Hinkley Point C, is hanging by a thread as critics inside key backer EDF use the political turmoil from the Brexit vote to try to derail the already delayed £18bn scheme.

Jean Bernard Levy, the EDF group chief executive, and the French and British governments, have in recent days insisted they are as committed as ever to a positive final investment decision being taken as soon as possible.

But well-placed sources in Paris have told the Guardian that the already divided EDF board, which must make that decision, is in danger of fracturing further as former supporters of the project worry about Brexit.

“The situation for Levy was already very delicate,” said one source. “But it has become a lot more difficult because there is so little certainty around the British government,” they added. “No one could know today which way a vote [of the board on Hinkley] would go.”

Those arguing against the project say it is impossible to make any decisions when it is unclear who will be the future prime minister, chancellor of the exchequer and energy and climate change secretary.

Highly critical EDF unions in France, which have six representatives on the main board, are pressing waiverers among the five independent board members who have previously supported Levy to change their minds.

Growing concern has led to four British trade unions urging EDF to press ahead with Hinkley.

It was a first “litmus test” that major infrastructure projects will proceed as normal following the Brexit vote, they argued. …”

http://gu.com/p/4ne38

Hinkley C: “very different this week to last week”

“Hinkley

27th June 2016

EDF’s plans to build an £18bn nuclear power plant at Hinkley Point in Somerset will be subject to a fresh wave of uncertainty following Brexit.

EDF reiterated its commitment to the project, which has already suffered repeated delays, after Brits voted to leave the EU on Friday.

But asked whether Brexit could lead to Hinkley being scrapped, Angus Brendan MacNeil, chair of the energy and climate select committee, said: “Anything could happen … Hinkley is in a very different position this week than it was last week.” “At the very least the final investment decision (FID) will again be kicked down the road … you can’t see the French committing billions to a country they thought was in the European Union and is no longer.”

Peter Atherton, utilities analyst at Jefferies, said: “It’s yet another added complication in what’s already a very complicated process.” He added that if chancellor George Osborne, who is a strong supporter of the project, leaves the Treasury his replacement “might take a somewhat different view”. …

Hinkley

Conflict of interest? Of course not!

LEP member SC Innovations Ltd (Supacat, M D Nick Amey) is making it clear exactly what it is expecting from its nuclear activities:

“… SC Innovation is Fit for Nuclear (F4N) accredited by The Nuclear Advance Manufacturing Research Centre (NAMRC) and is also the first South West England based engineering business to open an office in the Somerset Energy Innovation Centre (SEIC). The centre has been established to create collaborative opportunities for prospective Hinkley Point C contractors to engage with local and regional companies.

“SC Innovation can offer a flexible range of attractive opportunities to potential partners. We can offer workshop facilities and capabilities including subassembly, testing, verification and validation acceptance testing as well as documentation management. We can also project manage the local supply chain where they can benefit from our access to over 2000 suppliers in the south west region”, said Joe Wilcox, Head of SC Innovation. “One of our core competencies is delivering engineering projects in sectors which demand a high level of compliance with strict regulatory and technical standards, as evidenced by our F4N status”, said Joe Wilcox, Head of SC Innovation.” …

http://scgroup-global.com/newsevents/news/sc-innovation-seeks-collaborative-opportunities-with-international-suppliers-for-hinkley-point-c-in-wne-debut/

No conflict of interest there then!

Google ” most-searched-for words locally pre-Referendum

Exeter, Cornwall, Plymouth and North Devon – immigration (unsurprising)

Torridge and the South Hams – expats (obviously second-homers on both sides of the channel!)

Mid Devon, West Devon and Teignbridge – NHS (they are about to lose several local hospitals)

And East Devon? The economy. The only area that searched first on the economy.

Owl thinks it’s because lots of East Devon developers (particularly those at the Growth Point and Cranbrook) farmers who might become developers ( you know who you are) and councillors worried about paying for their new HQ hogged the search engine!

Wonder what our LEP members searched for? Still waiting for that upbeat press release, guys.

http://www.exeterexpressandecho.co.uk/google-stats-show-the-most-searched-for-issue-in-exeter-ahead-of-the-eu-referendum/story-29449216-detail/story.html

Update: the nearest other county that searched for the economy near us was North Somerset – so close to Hinkley C!

Brexit, developers, local plans and devolution

So, we voted out – and suddenly housebuilders (developers) shares plunged by 40%.

There does not seem to be an immediate link with voting out, but there is. We are in for an unstable time. There will be a recession and pundits differ only on whether it will be short (around 2 years) or long (anywhere from 5-20 years depending on who you listen to). House prices will reflect this by falling and mortgage rates may well rise, pushing some into negative equity and others wary of buying in case they fall into negative equity.

Housebuilders will also need to factor in higher import costs coming in the near future when EU trade reduces and new trade agreements have not begun, along with a local skills gap as workers from the EU dry up. Plus likely (possibly temporary)increases in income tax to cover lost government income from (again possibly temporary) shrinking markets. Not to mention higher unemployment benefits to those whose jobs currently depend directly and indirectly on those employers who would normally benefit from being in the EU.

To compound this, many developers have recently taken their huge profits out of their businesses by giving their directors massive bonuses.

All these factors cause a “perfect storm” for Local Plans and the general East Devon economy. Our Local Plan is predicated on continuous growth and increasing employment, fuelling a constant demand for new housing. And, more worryingly, there are penalties if this does not happen. If we (and all other councils) do not maintain a 5-year land supply, we are penalised by having our housing numbers INCREASED by 20%.

Another complication is that, currently, our council (and others) depend for income on the government’s “New Homes Bonus” – the more new homes it gets a developer to build, the more income it gets.

All this conspires to suddenly make our local plans hardly worth the paper they were written on.

Then there is devolution – which in Devon and Somerset also highly depends on housebuilding – having “promised” an extra 176,000 houses over and above Local Plans, and also dependent on continuous growth and constantly increasing employment. It is no coincidence that the Chairman of our Local Enterprise Partnership (LEP: the lead in the devolution bid) is Chairman of big developer, Midas.

Our LEP was also promised “jam tomorrow” funds (over 30 years) from the government AND anticipated masses of EU funding, all riding on the back of a new Hinkley C nuclear power station. All other devolved areas were given similar promises.

Our new government will now have its hands full attempting to negotiate its way out of the EU, rewriting or scrapping those EU laws we have (including those on environmental protection and workers rights) and trying desperately to work out where this notional extra £350 million a week is eventually going to be spent. It has already been promised to the health service, areas currently in receipt of EU regeneration funding and academic research programmes currently supported by EU grants. That is simply an arithmetical nightmare and almost certainly an impossibility.

This leaves East Devon in a precarious position: heavily dependant on new housebuilding and continuous year on year economic growth with constant employment growth and receipt of funds from a distracted government which has also promised to stem immigration – many having voted for this as its first priority. These two priorities will mean little time for other things. Not to mention having to deal at the same time with the implications of Scotland and Northern Ireland’s differing position on their future in the UK and EU.

The Local Plan and devolution deals are now almost certainly of much lower priority to this beleaguered government and this may well lead to unintended consequences the like of which our council and our LEP can only imagine and for which they have no plan B.

Many warned that economic growth and increasing employment between now and 2030, when our local plan ends, was unattainable and that at least one event would intervene for which there was no contingency. Few expected it to happen quite so quickly.

Hinkley C: delay piles up on delay

“EDF’s nuclear plant at Hinkley Point could face further delays after its workers launched legal action against the company in French courts and asked for the project to be put off.

The Works Council at EDF claims the energy firm has refused to grant access to key documents and that staff have been left unable to form a clear view on Hinkley.

The plant was due to be running by 2017 but the company is now aiming for completion by 2025, and has yet to make its final decision on how to raise the £18billion needed.

The decision was due in May, but delayed to consult the unions. Some representatives of EDF workers have asked for Hinkley to be put off for another three years – something the French energy company does not wish to do.

Their concerns echo those of senior managers at EDF, who last week wrote to the Energy and Climate Change Committee calling for Hinkley to be postponed.

In May, EDF’s UK boss Vincent De Rivaz faced questions from MPs over its failure to reach a funding decision last month, as had been promised.

If EDF fails to make its decision by September, it will be called back before the select committee again in October.

Jean-Luc Magnaval, secretary of the EDF workers’ committee, has said that even if judges force EDF to hand over the documents in question, the unions will struggle to come to a decision by their set deadline of July 4.

EDF said it had supplied comprehensive information on the project to the unions and participated in meetings to enable representatives to reach a decision in time.

A spokesman for EDF said: ‘EDF is confident in the quality of the information it has provided to the [union] in support of the Hinkley Point C project.’”

http://www.thisismoney.co.uk/money/news/article-3657038/Threat-delays-Hinkley-Point-Nuclear-plant-workers-launch-leagal-action-against-EDF.html

More serious problems for Hinkley C: EDF managers not in board

And still we have seen no Plan B from our national government or our LEP, for which it is their main flagship (aka vested interest) project.

“Senior managers at EDF have told MPs that they remain convinced that the French state-controlled group should postpone the Hinkley Point project until it has solved a litany of problems, including the reactor design and multibillion-euro lawsuits over delays on similar schemes.

The letter from EDF managers to the UK parliament’s energy and climate change committee is the latest setback for the proposed £18bn nuclear plant, a flagship government energy policy that is intended to provide 7% of Britain’s electricity from about 2025, at a time when old coal and atomic plants are closing down.

In April, the French company said it was delaying a final investment decision (FID) until September while it consulted with trade unions, but engineers and other middle managers appear to remain implacably opposed.

A letter addressed to Angus MacNeil, the chairman of the committee, from the Fédération Nationale des Cadres Supérieurs de l’Énergie (FNCS) union “advises to delay the FID until better upfront industrial visibility is evidenced”.

Outstanding problems highlighted by the senior managers at EDF include:

Areva NP, the designer of the European pressurised reactor (EPR) planned for Somerset, “is currently facing a difficult situation”.

The French nuclear safety authority (ASN) may not give the green light to the EPR being constructed at Flamanville in north-west France due to various anomalies.

There may be “identical flaws” in an Areva EPR being built at Taishan 1 in China.

The scandal over falsification of parts from Areva’s Le Creusot that potentially put safety checks at risk.

Multibillion-euro litigation between Areva and the Finnish energy group TVO over delays to an EPR scheme at Olkiluoto remains unsettled.

An EDF offer to purchase Areva expired on 31 March, leaving “governance uncertainties upon the implementation of the Hinkley Point C project”.

Many of the problems have been raised by other unions inside EDF, such as the CGT, which are worried that EDF’s soaring debts and growing financial commitments are a danger to its future stability.

But the letter from Norbert Tangy, the president of the FNCS, to MacNeil highlights once again the huge list of problems. Among others is concern expressed by the ASN at a hearing on 25 May that any resolution of EDF and Areva’s twin financial problems could take considerable time.

The energy and climate change committee is investigating the financing of new nuclear plants and has twice called Vincent de Rivaz, the chief executive of EDF’s British subsidiary, EDF Energy, to explain the delays at Hinkley. …”

http://gu.com/p/4yjx2

USA pulls big Chinese partnership deal over “performance issues”

What price Hinkley C if the USA pulls out of a big deal with China:

“A [billions of dollars] high-speed railway project that was seen as a landmark deal in China’s export of advanced ­technology to the United States has fallen apart over performance and American regulatory issues.”

http://uk.businessinsider.com/us-china-partnership-ended-on-nevada-xpresswest-rail-project-2016-6?amp?r=US&IR=T

China wanted the rolling stock to be manufactured in China ( one wonders how things got so far before this crucial point was introduced) and a Chinese spokesperson said:

“It will be more effective if China just exports its equipment to other nations,” said Zhao Jian, a professor at Beijing Jiaotong University. “But China should avoid giving out massive loans and gaining operating rights for such projects. Many nations consider railway operation as a sovereignty issue, and it’s not easy for China to get involved.

“Such projects are costly, and not many nations have a sufficient population to generate profits. The demand is not enough to ensure long-term viability.”

Does this apply to Hinkley C, Owl wonders?

East Devon Alliance Chairman on devolution

Paul Arnott was filmed on 25th May 2016 outside the Guildhall in Totnes, just prior to a public meeting on the encouragement and support of independent councillors in local democracy.

The meeting hosted a number of people from across the region (and beyond) and invited them to discuss ideas and exchange strategies. Here Paul Arnott, the Chairman of the East Devon Alliance, talks about a couple of the issues that motivated the group of independents he represents to take action.

Independence in Democracy Interviews: Paul Arnott

Hinkley C: experts say public has right to facts

“We strongly agree with Dr David Lowry’s well-reasoned criticism of the information commissioner who has refused public interest access to information on key EDF and DECC nuclear waste contracts (Report, 31 May).

There is no justifiable reason for the information commissioner, EDF or the DECC to keep secret these key facts from the people of the UK and north Somerset in particular.

In doing so, the commissioner has put EDF’s narrow commercial interests before the interest of the health and safety of the community. There is a key public interest in all of us knowing exactly the economic case for how or if radioactive waste from the proposed reactors at Hinkley Point C may be dealt with.”

Dr Paul Dorfman Founder, Nuclear Consulting Group, The Energy Institute, UCL
JRCT Nuclear policy research fellow
Dr Carl Iwan Clowes
Prof David Elliott
Emeritus professor of technology policy, The Open University
Dr Phil Johnstone
Research fellow, Science Policy Research Unit (SPRU), University of Sussex
Jeremy Leggett
Founder and chairman of Solarcentury and SolarAid, Author of The Carbon War and Half Gone
Jonathon Porritt
Founder, director and trustee, Forum for the Future, Co-director of the Prince of Wales’s business & sustainability programme
Pete Roche
Editor, No2NuclearPower, Policy adviser to the Nuclear Free Local Authorities
Prof Andy Stirling
Director of Science for SPRU, Co-director Centre on Social, Technological and Environmental Pathways to Sustainability, University of Sussex

http://gu.com/p/4k63q

French union refuses to back Hinkley C

A French trade union said it would not back construction of the $26 billion, dual-unit Hinkley Point C nuclear project in the UK due to financial issues.

The union, Confédération française de l’encadrement-Confédération générale des cadres (CFE-CGC), said plant owner EDF’s financial woes and environmentalist opposition could end the project, according to several news reports.

EDF’s chiefs in both France and the UK, as well as the French and UK governments, have all backed the project to build two European Pressurized Reactors (EPRs) to generate 3,200-MW of electricity.

Chinese nuclear company CGN has committed to fund one-third of Hinkley Point C. EDF planned to have a final investment decision on the project in December, but the 60-day consultation with the union could potentially delay the decision, the articles said.

http://www.power-eng.com/articles/2016/05/french-union-opposes-hinkley-point-c-nuclear-project.html