According to a French official who spoke to the Financial Times, France is seeking financial assistance from the United Kingdom to address a significant budget shortfall in the construction of nuclear power projects by the French energy company EDF.
This request from Paris could potentially strain ties between the two nations. EDF, which is state-owned, has already acknowledged that there will be further delays in the construction of a new nuclear power station at Hinkley Point in Somerset, with the total cost now projected to be as high as £46 billion.
The French official also revealed that France is advocating for a "global solution" that would also cover another planned UK plant, Sizewell C.
“It’s a Franco-British matter...The British government cannot at the same time say EDF has to figure it out alone on Hinkley Point and at the same time ask EDF to put money into Sizewell. We’re determined to find a global solution to see these projects through,” the official noted.
The UK government has said it wouldn't inject funds into the Hinkley Point project because EDF holds a majority stake in it. Regardless, it is supported by a government guarantee on its revenue once it's operational.
However, the Sizewell facility has a separate financial model. London has pledged to inject an additional £800 million, bringing its total contribution to £2.5 billion, while its partner EDF has no obligation for further financial support.
Though discussions between France and the UK had started a couple of months ago, London indicated it faced budgetary limitations that should be considered, French officials involved in the discussions say.
EDF's funding dilemma arose as the state-owned energy giant was navigating its way out of financial constraints. Additionally, sources familiar with the matter have stated that both France and the UK will face difficulties in attracting private investors to cover the deficit in Hinkley's funding.
The scramble to bolster the UK’s energy needs comes in the wake of the current energy crisis, exacerbated by the US-led West's anti-Russian sanctions that virtually deprived Europe of cheap energy supplies. This moved ended up boomeranging on the UK, triggering sky-high energy costs and a living crisis.