Hinkley Point 'poison pill' criticised as France underpins EDF

The first nuclear power plant to be built in Britain for 20 years was desribed as a "terrible deal" on Friday, just a day after the French government promised a bailout to allow the project to proceed.

On Thursday, France's economic minister Emmanuel Macron promised the part-state owned Électricité de France (EDF) aid to ensure the company's £18bn Hinkley Point C power project in Somerset could go ahead, saying it would be a mistake for the firm to back out now.

"If there is a need to recapitalise, we will. If there needs to be a further waiver of dividends, we will," he told media during a visit to France's Civeaux power station.

However, an unpublicised document from the Department for Energy and Climate Change showed the deal contained a 'poison pill', which could leave British taxpayers with a bill for £22bn if the plant was closed by a future government before 2060.

The minute set out the deal penned between Westminster and EDF, and committed Britain to paying around £40bn in subsidies during the life of the project. The £22bn 'poison pill', which would be triggered if the plant was forced to close by the government, could also be sparked by a call from the EU or the International Atomic Energy Agency.

Professor Catherine Mitchell, an energy policy expert at the University of Exeter, told the Guardian it was a "dreadful agreement for the nation".

“The £22bn ‘poison pill’ effectively reduces the risk to zero for EDF and its backers, which is great for them. But from an outside perspective, it smacks of desperation.”

“There could be so many reasons over 35 years that you would want to close the plant,” she added.

The deal would allow the plant to be closed on the grounds of safety and security without triggering the compensation payment, however.

Hinkley Point C had attracted much controversy since being announced. The project was being funded one-third by the China General Nuclear Power Corporation, and two-thirds by EDF.

A number of City analysts had criticised the plant's planned subsidy level, saying it was double the current wholesale cost of electricity.

The Confédération générale du travail (CGT), a French labour union with seats on EDF's board, had also called for the project to be shelved, fearing the company could not afford to proceed.