China fallout
Theresa May puts the brakes on Hinkley Point nuclear power project amid security fears over China’s involvement
PM shocks energy industry by calling for review of £18 billion project just as EDF finally gives it the green light
SECURITY fears over China’s involvement in the development of the new nuclear power station at Hinkley Point are among a host of reasons behind a surprise delay to the £18 billion project, it emerged yesterday.
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PM Theresa May has ordered an unexpected review of the plant owing to concerns over sky-high bill-payer subsidies, worries about whether the power plant will be operating by 2025 and issues with the French technology.
And the project, championed by George Osborne, could even be scrapped entirely if serious failings are found – amid suspicions the former Chancellor did not look carefully enough at the small print as he sought to woo China.
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One Government source said: “Every little bit of detail is being poured over. This deal has been 10 years in the making and people want it to succeed – but not so much that they would do stupid things.”
Another added: “It’s right to look at how this fits with the new Government’s industrial strategy. It would be irresponsible to sign this off on the basis of what the other guys said.”
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The energy industry was stunned on Thursday when ministers said a final decision on Hinkley would be made in the autumn – just hours after French firm EDF finally gave the go-ahead to the new nuclear plant which will supply seven per cent of UK electricity for 60 years.
The news comes just months after Mrs May’s top aide raised concerns that Chinese involvement in the scheme could put national security at risk, amid fears they would insert a “trapdoor” into computer systems allowing the country to shut the power station down at will.
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China’s General Nuclear Power Corporation is footing a third of the bill with a view to investing in future nuclear sites.
But Theresa May's close aide Nick Timothy said it was “baffling” the Government was inviting “hostile” China to invest in key infrastructure projects.
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The Chinese firm was last night said to be “bemused” and “frustrated” at the delay, which was also slammed by unions and business chiefs.
GMB union boss Justin Bowden described it as “bewildering and bonkers” and warned it could put 25,000 jobs at risk.
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Dr Adam Marshall, acting director-general of the British Chambers of Commerce, said: “Delays in making decisions on key infrastructure investments is becoming a depressing theme of successive governments.”
But eco-activists Greenpeace urged Mrs May to scrap the “radioactive white elephant” which will add £10 a year to power bills.
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