2014 Report details for project: FID Enabling for Hinkley Point C

Project name: FID Enabling for Hinkley Point C - there are 5 reports for this project: 2013, 2014, 2015, 2016, 2017
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Organisation: DECC (D11) - see all reports for this organisation
Report year: 2014 (data is from Sept 2013)
Category: Infrastructure - see all reports for this category
Description: The Electricity Market Reform White Paper set out the Government’s commitment “to work actively with relevant parties to enable early investment decisions to progress to timetable wherever possible, including those required ahead of implementation of the Feed-in Tariff with Contracts for Difference (FiT CfD)”. To deliver this commitment, DECC will enter into discussions with relevant developers with a view to considering what form of comfort might be given to support the taking of such investment decisions. The FID Enabling project gives effect to this commitment. By providing an appropriate form of comfort in advance of the implementation of EMR reforms, we are likely to encourage final investment decisions to come forward that would otherwise have been delayed until all necessary legislation had been enacted and new institutional arrangements put in place; or possibly cancelled altogether. This supports the Government’s decarbonisation and security of supply objectives as well as stimulating investment which creates jobs and growth. The first developer to seek assurance through the FID Enabling project, and whom we have accepted meet the criteria, is New Nuclear Build Generation (NNBG), a subsidiary created by EDF Energy to build a new nuclear plant at Hinkley Point C. NNBG will not move to a final decision to proceed with construction in the absence of additional certainty on expected revenue in the reformed market. A delay until the enduring regime is in place could substantially increase costs (ultimately principally borne by the consumer) or result in EDF abandoning the project. Either of these outcomes risks setting back the rollout of new nuclear generation as a whole, because the other developers are waiting for EDF to bear the first-mover risks.
DCA (RAG): Exempt FOI
DCA text: Data exempt under Section 43 and Section 35 of the Freedom of Information Act (2000)
Start date: 2011-09-01
End date: 2015-02-01
Schedule text: Start date represents start of project following the EMR White Paper of July 2011. End date represents the expected conclusion of the project following award of contract and transition of contract management to the Counterparty body.
Baseline: £3.97m
Forecast: £6.73m
Variance: 69.42%
Variance text: Project costs relate to the project team and external advisers. Project timelines have changed and in Q2 2013/14 it was forecast that there is insufficient budget for external adviser costs. Additional budget has since been sought in DECC's mid year review and 2014/15 business planning.
Whole Life Cost: £13.69m
WLCost text: The forecast above is whole life costs for the policy/delivery team only and excludes costs associated with the CfD/investment contract. The cost to EDF of building, operating and decommissioning the nuclear plant are also excluded.
Notes1: Data exempt under Section 43 and Section 35 of the Freedom of Information Act (2000)
Sourcefile: IPA_2014.csv

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