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World

UK puts the brakes on EDF's nuclear plan

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World

UK puts the brakes on EDF's nuclear plan

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COMING UP:UK puts the brakes on EDF's nuclear plan

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00:00:02
>> The UK government rethinking plans to build two new nuclear reactors. Just hours after French company EDF voted to go ahead with the project. New prime minister Teresa May launching a fresh review into the 18 billion pound deal. Reuters utilities correspondent Geert de Clercq in Paris is surprised by the delay.
00:00:21
>> Well, UK is a quite specific position in terms of energy in that a lot of coal plants will be closed in coming years, There is a risk that they would be short of energy. A risk of black outs.>> Executives at EDF also left scratching their heads.
00:00:39
They had expected Britain to rubber stamp the deal on Thursday after EDF's board approved the project by 10 votes to 7. Under the proposal the French group would assume the upfront costs. Unions have argued that could jeopardize the firm's survival. But the French government is keen to push it through despite the risks.
00:00:57
>> The French have a big nuclear industry which they need to keep alive if they want to be able to renew and modernize their own fleet. And since France is so heavily nuclearized already, they cannot build any nuclear reactors in France, they're finishing one right now, which will be done around 2018.
00:01:16
So the timing will be ideal for EDF and the whole French nuclear industry to then start working on the Hinkley Point project. This way they keep contracts and jobs and work in the French nuclear industry. Yes it is a risk for EDF but the French government considers that it's a bigger risk not to do it.
00:01:38
>> Teresa May's decision then could be a surprise to the French president. She met with him just last week but the UK government is playing down suggestions of a u-turn Instead saying the new PM just needs more time, a decision now slated for September.