Latest update on the European Commission’s investigation into possible state aid for the Hinkley point nuclear new-build project
On 18 December 2013, the European Commission decided to investigate alleged state aid by the UK into the nuclear new-build project at Hinkley point in Somerset. How has the UK responded to the opening of the investigation?
First, the UK states that it fully supports achieving the common EU objectives of decarbonisation, security of supply and diversity of supply at the lowest cost; but like many member states, we face unprecedented challenge in achieving these objectives. As the UK has concluded that new nuclear will help it achieve these objectives, it is an important part of our future energy mix.
However, the UK has also identified that there are genuine market failures. This means that optimal delivery of these objectives will not happen without state intervention to bring forward new nuclear capacity…
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