The French energy company does not rule out giving up extending the life of the Heysham 1 and Hartlepool power plants beyond 2024 since the introduction of a tax on windfall profits.
EDF set to strip UK of 4% of electricity sooner than expected? According to Telegramcould the French energy company – which operates the 5 nuclear power plants in operation across the Channel – decide not to extend the life of two of them because of a new tax on windfall profits decided by the British government and came into effect last week.
The proceeds of this temporary tax aimed at electricity producers will help households pay their energy bills. But this new tax has gone down badly with both companies that produce low-carbon energy and some Conservative MPs who fear it will discourage investment in the UK at a time when the country is worried about its energy supply.
Because EDF is windfall tax could complicate the maintenance in operation of the aging Heysham 1 (2 reactors) and Hartlepool (2 reactors) power stations, which were commissioned in 1983 and which today supply up to four million households. Last September, the French energy company said it was seriously considering extending the life of these two sites beyond the decommissioning date originally set for March 2024.
“It will be taken into account”
But the new tax on profits, which comes on top of inflation, seems to have changed the situation. “Obviously this will be factored into the life extension business case (for the two plants). It’s not going to make things any easier,” he said. Telegram Rachael Glaving, Commercial Director at EDF UK.
The announcement comes as Britain already fears it will have to make cuts this winter. In the worst case, the high demand for electricity caused by falling temperatures will also be accompanied by a reduction in gas imports from Norway and electricity from France. An extreme situation that would then force the UK to use blackouts for a total of four days.