Spectator letters: EDF answers Peter Atherton, Christopher Booker on wildlife

Nuclear reaction

Sir: Peter Atherton questions whether a new nuclear power station at Hinkley Point is a fair deal for the UK (‘Nuclear fallout’, 22 February). However, his conclusion is based on some unvalidated assumptions. In May 2012, he wrote that EDF would need £166 for each megawatt hour of electricity produced to get a ‘realistic return’. Now he says that an agreed price of £92.50 offers rewards which are ‘eyewateringly attractive’.

Neither claim is justified. It is a balanced deal which will unlock £16 billion of investment at the lowest possible cost for consumers. He claims returns to investors of up to 35 per cent. As reported last October, target project returns are 10 per cent and, with borrowing, equity investors may achieve closer to 15 per cent. These investors will take the risk of delivering the project on budget and also face risks on the performance of the station when built.