Policy paper

Hinkley Point C: contractual documents

Contractual documents and supporting information for the Hinkley Point C nuclear power station.

Documents

Contract for Difference

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Secretary of State Investor Agreement

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Exchange of letters part 1

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Exchange of letters part 2

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Exchange of letters part 3

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Value for money assessment

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Detailed Value for Money Assessment

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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.

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.

Published 29 September 2016
Last updated 23 June 2017 + show all updates
  1. Detailed Value for Money Assessment published
  2. First published.