Hinkley Point decision unexpectedly postponed until autumn

The government unexpectedly postponed giving the go-ahead to build the UK’s first nuclear power plant in 20 years on Thursday.

The government will now decide on whether to pursue Hinkley Point C in early autumn.

A spokesperson for the newly-formed department for business, energy and industrial strategy said: “We do have a new government and they need to review all the details. It is only right we look at the details before making a decision."

On Thursday the board of state owned French utility EDF, which is financing most of the £18bn needed for the project, narrowly voted to proceed with the Hinkley Point project in Somerset.

It was expected on Friday that EDF and the government would sign contracts to confirm the deal.

Chinese officials reportedly returned home, as they were also expecting to sign contracts for their stakes in the project.

The government is trying to encourage business investments after the EU referendum result so the delay on the Hinkley Point decision was seen as confusing to some.

Confederation of British industry (CBI) deputy director-general, Josh Hardie said: “While it is understandable the government wants to get to grips with the details of the Hinkley contract, it must press ahead to finalise the deal as soon as possible.

“The UK is facing a major investment challenge to ensure a secure, low-carbon and affordable energy supply. It’s crucial that we see clear and timely decisions, and send a definite message that the UK is well and truly open for business”.

EDF chief executive Jean-Bernard Levy, however, remained confident. He said: "I have no doubt about the support of the British government led by Mrs May."

Shadow energy secretary, Barry Gardiner told the BBC: "The government has said for two years now that they didn't need a plan B which I was calling for two years ago.

"Now at a day's notice they have cancelled the final signing of the agreement that they told the press and everyone they were going to do. I'm hoping what they will do is take two-three months to seriously review it."

Shares in EDF were up 8.73% to 11.96¢ at 1240 CEST.