The chickens are coming home to roost for EDF for their questionable decision to go ahead with building Hinkley C -a decision they took despite the lack of certainty over whether they would get enough backing from the British Government. Originally EDF was publicised as being offered UK Treasury loan guarantees that had been widely touted as a vital basis for building Hinkley C. But now the French Financial Markets Regulator has sanctioned EDF for not flagging up how conditional such loan guarantees were. These loan guarantees have never materialised. Essentially, EDF is now continuing to build Hinkley C using money borrowed on its own balance sheets – borrowings which are much more costly than UK Government backed guarantees and which reduce its own (EDF) profitability. The Finance Officer of EDF actually resigned at the time EDF decided to go ahead with building Hinkley C. Of course all this is happening at the same time when we are being asked to believe that the next EPR (at Sizewell C) is going to be delivered at low cost to the consumer if the risk of building the plant is transferred from EDF to the British taxpayer and consumer! This is the so-called RAB mechanism, something that could well just turn out to be an almost unlimited cash facility for EDF to park their financial black hole in the centre of British finances (as well as those of the French).
Dave Toke’s Blog 27th June 2020 read more »