The government has announced a £10 billion infrastructure guarantee for a new nuclear power station at Hinkley Point in Somerset. The government has offered the money to EDF to help finance the £14 billion construction.
It is a commercial loan, not a subsidy. EDF has already prepared the site next to the two existing stations, but wouldn't commit to the project unless the government guaranteed a minimum price for the electricity the new reactors will produce.
Opponents fear it will mean a big increase in bills. Negotiations about the terms of the contract remain on-going.
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