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ARTICLE · 29 MAY 2014

Role Of The State In Nuclear Power Development

Gowling WLG
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The European Commission decided to launch an investigation into the financing scheme designed to attract investment for the Hinkley Point C nuclear project.

European UnionEnergy and Natural Resources

The Hinkley Point State Aid Case before the European Commission

Last month, the European Commission (EC) published its decision (notified by letter to the United Kingdom Government in December 2013) to launch an in-depth state aid investigation into the U.K.'s proposed financing scheme designed to attract necessary capital investment for the Hinkley Point C nuclear project. The most contentious measure in the financing package is a "contract for difference" (Cfd) mechanism, which provides a form of price protection to NNB Generation Company Limited (NNBG), a wholly owned subsidiary of EDF Energy, who will construct, own, and operate Hinkley Point. This is the first time the EC has considered whether the use of a Cfd measure in the context of a new build nuclear project will offend the European Union's (EU's) rules against state aid.

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