Herbert Smith Freehills is pleased to announce that its client, EDF, has moved one step closer to finalising arrangements to build a new nuclear power station at Hinkley Point C in Somerset. Following a rigorous 12-month long investigation led by European Commission Vice-President and Commissioner for Competition, Joaquin Almunia, the European Commission approved the State aid case for Hinkley Point C on 8 October 2014. The State aid case comprises of the long-term contract for difference providing payment support to the project and the guarantee by Her Majesty's Treasury in respect of the project debt.

This milestone is a major step forward for the project and will enable EDF and the UK Government to reach agreement on the final investment decision on a project that will supply 7% of UK's electricity needs and has been described by the Energy and Climate Change Secretary, Ed Davey as a deal ensuring "Britain has secure, affordable low carbon electricity in the 2020s".      

Julia Pyke, Herbert Smith Freehills' partner and co-head of Nuclear has been leading a cross-practice, London-based team on the project. The team includes partners Matthew Job (leading on negotiations in relation to the guarantee by Her Majesty's Treasury in respect of project debt) and Steven Dalton (leading on negotiations with potential equity investors in the project).

Herbert Smith Freehills has advised long-standing client EDF Energy on agreements to build the UK's first nuclear power plant for a generation, with the development of two European Pressurised Reactors at the Hinkley Point "C" site in Somerset.