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Consumers will be protected from possible hikes in operational costs for the first time as part of a new deal to build Britain's first nuclear power station in a generation, the Energy Secretary announced.
Ed Davey said that he had ensured a value for money deal in which consumers would "gain share" but never "pain share" in the event of operational costs changing from current forecasts.
He told the Commons: "The good news is we have negotiated a gain share for the consumer, the consumer has no pain share.
"If the construction costs go higher, that construction risk is taken by the developer, EDF; if the construction costs are lower the consumer will benefit. That's not happened before and it's a welcome protection for the consumer."
The Prime Minister and the Energy Secretary have been taken on a tour around the Hinkley site where Britain's newest nuclear power plant will be built.
Energy Secretary Ed Davey told a news conference in London it was a "historic" day.
He said the UK was facing a "looming energy crisis" in the next decade thanks to years of neglect and under-investment.
Much of coal and nuclear-generated energy will stop in the coming years.
"We have known for years this is coming, but no-one was willing to take tough decisions."
Mr Davey stressed the project included plans to cover the costs of de-commissioning, with the operators required to pay into a fund from day one.
Nuclear industry expert Dave Gardner explained to ITV News why it was necessary to set a "strike price" in advance of a nuclear deal being agreed:
Ed Miliband attacked the strike price agreed between the Government and EDF over energy generation at the Hinkley C nuclear power station.
"We're in the ridiculous position today where we've got the Prime Minister who says that he can fix prices 35 years ahead for the energy companies but he can't freeze prices now for the consumer.
"No wonder we've got a cost of living crisis in this country."
He added that Labour supports nuclear power but said the Government needs to take "action" on energy price rises.
Greenpeace UK director John Sauven said:
John Cridland, CBI director-general, welcomed the Hinkley nuclear deal as a "fundamental feature of our future energy landscape."
"If we're going to have cleaner energy, a more secure energy, it's not going to come without paying a price," Jeremy Nicholson, of the Energy Intensive Users Group, told Daybreak.
"The one thing we are guaranteed out of this," he went on, " we're going to get secure energy, and that's worth something."
But the Green Party's Baroness Jones said the Hinkley deal was "a disastrous decision".
"At the moment we don't know what to do with the nuclear waste and that means we are giving our children and our grandchildren a huge cost to pick up cleaning up after we've finished with this energy."
Much of the value of today's nuclear deal will be judged on the "strike price" agreed - a pre-arranged price at which the Government ensures producers will be paid for the electricity they generate.
The Government confirmed that that strike price would be £92.50 per megawatt hour (around double the current rate) fixed over 35 years but rising in line with the CPI inflation rate.
That price drops to £89.50 if a deal for another new nuclear plant at Sizewell C is agreed.
Latest ITV News reports
A controversial deal to build a new nuclear plant at Hinkley Point in Somerset will provide power for 35 years, but at what cost?