A NEW nuclear power station at Hinkley Point moved a step closer after investigators probing its funding have indicated they will allow it to go ahead.

French energy giant EDF's plans for the plant at Hinkley have been on hold while awaiting the outcome of a European Commission investigation into whether the terms of the subsidy deal struck with the British Government constituted illegal state aid. Under the deal, EDF and its partners in the project will be guaranteed a price of £92.50 – twice the current market price of electricity - for each megawatt-hour of power that the reactors generate over a 35-year period.

Reports in the national media now suggest the EU Commissioner Joaquín Almunia, who is responsible for ruling on competition, has found in favour of the deal.

A final published decision is expected in the next few weeks.

A spokesperson for EDF Energy said: “Confirmation that Vice-President Almunia recommends that the College of Commissioners approve the agreement on Hinkley Point C is another positive step forward for this vital project.

“The process to gain approval continues in line with the expected timetable.

“This agreement between the UK Government and EDF for the first new nuclear power station in Britain since 1995 is fair and balanced for consumers and investors alike.

“The state aid investigation has been rigorous, robust and thorough and we expect that the College of Commissioners will recognise this.

“Hinkley Point C is an important project which will deliver Europe-wide objectives, offering the prospect of reliable, secure and low carbon electricity for many decades to come as well as boosting jobs and skills.”

But not all are celebrating. Stop Hinkley Campaign spokesperson Allan Jeffrey said: “Surely the job of the European Competition Commissioner is to make sure taxpayers’ and electricity consumers’ money is spent on the most cost-effective measures to reduce carbon emissions and provide energy security. Hinkley Point C is neither.

“The most cost effective way to reduce carbon emissions is to use energy more efficiently, but this Government’s energy efficiency programmes have been a disaster.

“And renewable technologies are being unfairly constrained despite the fact that solar and offshore wind are likely to be cheaper than nuclear by 2023, and could start generating much sooner. If this deal goes ahead it will be a slap in the face for Ban Ki Moon because our efforts to tackle this urgent problem will be severely constrained.”

EDF is expected to negotiate deals with Chinese nuclear companies who will take a stake in the business, before announcing its final investment decision.