15 Dec 11

EMR policy decisions a very positive step

Third day in a row of big progress for new nuclear as momentum gathers pace

EDF Energy said today: This new set of policy decisions on Electricity Market Reform (EMR) is a very positive step.

In particular, we are pleased that this set of policy decisions confirms that:

  • Measures will ensure that investment decisions are not delayed pending full implementation of EMR;

  • Government will keep full responsibility for EMR policy objectives and for agreeing the key terms of feed-in tariff contracts for differences (CfDs);

  • These CfDs can be trusted by investors to provide a fair risk/return profile that ensures that their projects are financeable;

  • These CfDs will be signed off by Government and guaranteed by legislation, with National Grid acting as the administrator of the CfD;

  • Government remains committed to ‘grandfathering’ the CfD;

  • CfDs will be legally binding and not open to legal challenge.

We are also pleased with the Government’s choice of a market wide capacity mechanism. It should be implemented without delay to support continued security of supply of the system, and to build the right interaction with CfDs and the energy market.

We look forward to engaging with DECC to help finalise the details of these arrangements. We also believe we meet the criteria to start discussion on transitional arrangements to allow early projects to progress and we will respond to DECC’s invitation to take forward discussions.

EDF Energy CEO Vincent de Rivaz said: “This is a very positive step. We believe these arrangements, once details are finalised, are going to be crucial to allow us to take a Final Investment Decision on new nuclear at the end of next year.

“Three days in a row UK new nuclear has made big progress. Today’s decisions are evidence the momentum is gathering pace. On Tuesday I announced £200 million of contracts on our project at our third national supply chain event. Yesterday our EPR reactor received interim certification from the Office for Nuclear Regulation. Today we have the policy decisions on electricity market reform.

“This week’s progress sets us on the path to low carbon, secure and affordable electricity in line with policy objectives and is part of the growth agenda, creating jobs and opportunities.”

EDF Energy plans to build up to four new nuclear power stations in the UK with its partner Centrica. Our plans for new nuclear will provide enough electricity for 40% of the UK’s homes. The project will unlock billions of pounds of investment, creating thousands of jobs and major opportunities for UK plc.

We also invest in renewables and we are completing a state of the art gas plant. We are also investing hundreds of millions of pounds in energy efficiency and customer service systems.