2016 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: 2016 (data is from Sept 2015)
Category: Infrastructure - see all reports for this category
Description: Primary objective is to agree a contract to enable the construction and operation of a new nuclear power plant that achieves a fair deal, represents good value for money, is affordable and is compatible with State aid rules. Secondary objective is to fully explore and understand the issues around a CfD for HPC and make a recommendation to ministers based on this.
DCA (RAG): Exempt FOI
DCA text: Data not provided
Start date: 2011-09-01
End date: 2016-06-01
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. End date estimated as being in 2016
Baseline: £2.30m
Forecast: £5.90m
Variance: 156.52%
Variance text: Project costs relate to the project team and external technical, legal and financial advisers. In Q1 2015/16 an overspend was forecast against the 2015/16 budget due to changes to the project timetable. Additional budget was sought in DECC's mid year review.
Whole Life Cost: £36,963.64m
WLCost text: The Whole Life Costs (WLC) for this project are determined by the difference between the Strike Price for Hinkley Point C and the long-term Wholesale Electricity Price forecasts, which are influenced by market prices for fossil fuels. Therefore, we would expect the WLC to vary year on year to reflect changes in the market. From 2014 to 2015, DECC’s projections of wholesale electricity prices fell, reflecting underlying low fossil fuel prices and a subsequent reduction in DECC’s gas and coal projections. This resulted in an increase in the whole life costs for Hinkley Point C. Wholesale prices are volatile and sensitive to a number of uncertain factors including, for example, future global gas price trends, carbon prices, coal prices, the level of intermittent generators in the system and demand trends. Whereas the strike price agreed for Hinkley Point C is fixed and has been set following extensive negotiations with EDF and with advice from independent expert advisors. Hinkley Point C alone will generate 7% of reliable low carbon electricity for the UK; enough to power 6 million homes for 65 years.
Notes1: Exempt under Section 43(2) of Freedom of Information Act 2000
Sourcefile: IPA_2016.csv

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