Energy boss warns Hinkley nuclear prices “unaffordable”

UK nuclear power plant gets green light
The Hinkley Point C plant, costing an estimated £16bn, will provide nuclear power for the next 60 years.

The head of one of the UK’s largest energy consumers has warned that UK manufacturers would be unlikely to afford the cost of power from the new Hinkley C nuclear power station.

Jim Ratcliffe whose company Ineos owns the Grangemouth plant in Scotland, told the BBC that power from the new Hinkley C nuclear generator woud be too expensive.

Despite Ineos singing a recent deal for nuclear power in France at a cost of £37.94 per Mwh, the British Government has promised a 35-year price of £93.50 per Mwh at the Hinkley plant.

The news is further detriment to an industry that is already feeling the grip of the highest energy prices in Europe.

Tata Group, one of the UK’s major manufacturing brands’ ethics officer Dr Mukund Rajan recently told The Manufacturer that UK energy prices were “a major concern” for the company.

“We are looking for the government to bring UK energy prices more in line with what business needs,” Dr Rajan said. “Tata Steel Europe has been particularly vocal on this, but energy is also severely effecting manufacturing competitiveness for Tata Chemicals in the UK.”

Only last week Tata Chemicals cut 220 jobs at its Winnington plant near Liverpool, blaming energy costs for the contraction of operations.