Hinkley Point plan back in spotlight as EDF executive quits

Tensions over plans to build a new nuclear power station in Britain were exposed on Monday after the finance director of project leader EDF quit his job in protest, sending the French company's shares down over 6 percent.

The 18 billion pound project in southwest England was first announced in October 2013 but a final investment decision has been repeatedly delayed.

Developed as a partnership between state-controlled EDF and Chinese group CGN, the plan to build two 1,650-megawatt nuclear reactors -- among the biggest in the world -- has faced opposition from unions and within EDF's board.

A source familiar with the situation told Reuters on Sunday that finance director Thomas Piquemal shared the concern that going ahead now could further weaken EDF's finances and that he had resigned to highlight the risk.

In an email on Monday, EDF CEO Jean-Bernard Levy repeated that the go-ahead would come soon, having said last month that the first concrete should be poured there in 2019.

"With the support of its state shareholder, EDF confirms it is studying the investment in the two Hinkley Point reactors in the best financial conditions for the group, with the aim of announcing a final investment decision soon," Levy said.

Levy said in the statement that he regretted the hastiness of Piquemal's departure but did not elaborate about why he resigned. EDF said its finance head for France, Xavier Girre, would take over in an interim role.

EDF is struggling to prop up Areva, the loss-making designer of the plant whose prototype is under construction at Flamanville in France. Last month EDF cut its dividend and said it would pay the government in stock to help make ends meet.

Hinkley Point is central to Britain's energy security strategy as its own fleet of nuclear plants ages. It has proved controversial, with opponents saying the power price guarantees Britain has promised clash with its policy of promoting renewables.

Analyst Xavier Caroen of broker Bryan Garnier said the news was "clearly negative" for EDF since it exposed the rift in opinions within the group.

"The CFO was pushing for a three-year delay to make a final decision on this project, while Levy, notably urged by the French government, was pushing for a short-term decision," he said.

French President Francois Hollande and British Prime Minister David Cameron discussed the project at an annual summit last week, calling it a pillar of the French-British relationship.

British officials declined to comment on Piquemal’s resignation on Monday, saying this was a corporate matter.

"The government believes good progress is being made on the Hinkley Point C nuclear project,” said a spokeswoman for Britain’s Department of Energy and Climate Change.





Link : http://uk.reuters.com/article/uk-edf-britain-nuclear-cfo-idUKKCN0W90SB