Hinkley Point C: contractual documents
Contractual documents and supporting information for the Hinkley Point C nuclear power station.
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Details
Hinkley Point C will be the first new nuclear power station to be built in the UK in a generation. It will produce 3.2GW of clean and reliable electricity for 6 million homes.
The documents published here detail the contractual obligations that government has entered into, including the analysis in the Value for Money assessment that allowed ministers to make the decision to proceed with the project.
The Contract for Difference (CfD) details the allows for payments to generators to provide increased certainty around revenue levels, in order to bring forward investment, while retaining the need for the generator to sell its electricity in the commercial market.
Update: November 2022
We have added an updated contract. The update means the Longstop Date, the point at which the CfD may be terminated for non-completion, moved from 1 November 2033 to 1 November 2036.
The extension reflects LCCC’s work with the HPC project over the last 20 months to understand the impacts of COVID-19, as well as the outcome of BEIS’ negotiations with China General Nuclear on the Sizewell C nuclear project.
A Secretary of State Investor Agreement provides protection (for the term of the CfD) for investors from qualifying changes in law which permanently prevent the construction or operation of the facility or a reactor where there is a political shut down of Hinkley Point C by a UK, EU or international Competent Authority. Also included are provisions where project outperformance or equity sales that increase investors’ realised equity returns above the base case would be shared with the consumer.
The Exchange of Letters confirms that the government is able to prevent the sale of EDF’s controlling stake prior to the completion of construction, without prior notification and agreement of ministers.
The Value for Money assessment supports the Secretary of State’s decision to Direct the Low Carbon Contracts Company to offer a contract in respect of Hinkley Point C.
Last updated 29 November 2022 + show all updates
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Updated Hinkley contract added, reflecting LCCC’s work with the HPC project over the last 20 months to understand the impacts of COVID-19, and the outcome of BEIS’ negotiations with China General Nuclear (CGN) on the Sizewell C nuclear project.
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Detailed Value for Money Assessment published
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First published.