French energy giant EDF has denied claims that it has reached provisional agreement with the Government on negotiations that would help kick-start a new nuclear power plant in Somerset.
The £14 billion Hinkley C project is stalled while the Government and EDF attempt to agree the price for the electricity it would generate.
The figure is crucial to EDF making a final decision to invest. It is still courting investment partners after Centrica, owner of British Gas pulled out in February.
The Times newspaper reported on Saturday that EDF has lined up a consortium of investors and, in the past two weeks, the Government and the power company have provisionally agreed a subsidy level of between £93 and £95 for each megawatt hour generated by the reactors, almost twice the wholesale market price. The deal would guarantee EDF the price for at least 30 years. Subsidy would be paid for by a levy on consumers' bills.
Last month EDF revealed that it was temporarily cutting hundreds of jobs in a bid to control costs as the negotiations dragged on. It said the decision, affecting jobs in England and France, was simply a case of good housekeeping. The site is costing EDF £1 million a day.
Yesterday EDF denied provisional agreement has been reached. It issued a statement saying: "Contrary to recent media speculation, there is not yet an agreement between EDF Energy and the UK Government on a contract and price for electricity from the proposed Hinkley Point C power station.
"Negotiations are continuing which both sides have characterised as positive."
Speaking during a visit to Bridgwater earlier this month Prime Minister David Cameron said he was confident the project would go ahead.
EDF has not commented on reports that it has found new partners.
EDF was granted planning permission for the twin reactor by the Secretary of State for Energy and Climate Change in March.
The reactor design was approved by regulators last year, and the nuclear site licence was also granted last year.
Centrica withdrew from the project citing as its reasons for doing so uncertainty surrounding the future of nuclear power in Britain, increasing anticipated project costs in new nuclear plants and the construction timetable extending by a number of years.
Construction alone will take ten years but will create thousands of jobs.
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