It is being widely reported that the EDF board meeting to decide whether to invest in Hinkley power station in the UK was postponed, amid reports of uncertainty and even panic among board members.
The decision on whether to invest £24.5 billion in the Hinkley project has been postponed primarily because of issues that have been raised by management level trade union CFE-CGC, which has a seat on the board, in 15 questions that raise financial, legal and strategic concerns over whether EDF can afford the project, or deliver it on time.
The manager’s union also points to the high level of financial risk as EDF’s total market share value is less than the cost of Hinkley. EDF’s share price has fallen by 50% over the past 12 months, and investor confidence is low, bringing under the spotlight its ability to borrow enough cash to finance the plant.
Separately, an association of employee-shareholders (EAS) recently said that the project to build two Hinkley reactors is so expensive and so risky that it puts the survival of the French utility at risk.
Questions are being raised regarding the quality of EDF EPR reactor itself. Greenpeace chief scientist Douglas Parr commented: "The three EDF reactors that already exist in Finland, France and China haven’t even proved they can work. They use the same technology planned for Hinkley, but all three have faced severe delays and spiralling costs".
