China in line for role in British nuclear deal
Agreement with French power firm EDF may lead to construction of Britain's first reactor in decades, with Chinese assistance on the cards
Britain may agree with Electricite de France on guaranteeing power prices within weeks, paving the way for the nation's first new nuclear plant in two decades, and a Chinese company could play a major role in it.
EDF has been in talks with Britain on the price for more than a year and delayed an investment decision on the plant at Hinkley Point in southwest England originally planned for 2012.
Britain is trying to encourage the construction of new plants while curbing greenhouse gases and household bills. EDF's plan to build two Areva reactors at the site hinges on the rate it gets for power under a so-called contract-for-difference (CFD) that is agreed on with the government and paid for by consumers.
EDF is seeking a strike price of £95 (HK$1,179) to £99.50 a megawatt-hour for the plant, a person familiar with the talks said in February.
An EDF spokeswoman declined to comment on prices or talks. The Department for Energy and Climate Change said in a statement that a deal must offer "value for money".
Opposition Labour Party proposals to freeze retail power prices for 20 months if it is elected in a 2015 poll would not likely affect Hinkley Point, said Lakis Athanasiou, a utilities analyst at Agency Partners.