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GMB Welcomes Government Go-Ahead For Hinkley Point

Thursday, September 15, 2016

GMB Welcomes Announcement That Gives The Go Ahead For Hinkley Point C Nuclear Power Station

GMB is delighted that the first of the badly needed fleet of new nuclear power stations is going ahead

GMB, the union for energy and construction workers, welcomes reports that the go ahead for Hinkley Point C nuclear power plant has finally been given. (See notes to editors for a copy of the Department for Business, Energy & Industrial Strategy release)

Justin Bowden, GMB National Secretary for energy, said “GMB is delighted that the first of the badly needed fleet of new nuclear power stations will finally begin construction. This is the right decision for the country and the government is right to ignore the begrudgers and naysayers.

Having secure low carbon electricity, for the 61 days per year when there is no renewable energy sources available, is crucial if we are to meet our energy needs and reduce our dependency on foreign imports of power. (See notes to editors for details of dates in year to 31st August 2016 when there was little wind power available).

With Hinkley now confirmed, attention must rightly shift to the other new nuclear power stations - including Bradwell in Essex and Sizewell in Suffolk - which we badly need across the country. The solution however is not to handover the replacement of vital UK infrastructure lock, stock and barrel to China. GMB strongly cautions that the funding of nuclear developments should always be kept totally separate from the regulation of the design and construction of new nuclear facilities and the transport and safeguarding of nuclear and radioactive materials. Chinese pop-up power stations are not a solution on their own."

Phil Whitehurst, GMB National Officer for construction, said “After all the delays and procrastination we have finally got there. Not only will the £18bn Hinkley Point C project provide 7% of the UK’s energy needs and create at least 25,000 jobs during its construction and another 900 during operation, but 65% of the project’s construction value will be placed with the UK supply chain.

Along with this is an agreed minimum 1,000 apprenticeship and adult trainees, creating a skill training level that will put other UK projects to shame.

This project is vital to kick start the UK economy post Brexit and will now show the world that UK PLC is open for business and ready for the challenges to come. For Bradwell, the Chinese have to first get a generic design assessment, then a Nuclear licence, and then most of all make assurances that even though they are the manufacturer of the reactor that the UK supply chain will be utilised as on Hinkley Point C. Those agreements are to be used as a minimum standard. GMB will not stand by and watch any discrimination against either the UK supply chain or UK workers. This will be a fight we will face in the near future."

End

Contact: Phil Whitehurst 07968 338810; Justin Bowden on 07710 631351 or GMB press office on 07958 156846 or press.office@gmb.org.uk

Notes to editors

1 https://www.gov.uk/government/news/government-confirms-hinkley-point-c-project-following-new-agreement-in-principle-with-edf

Government confirms Hinkley Point C project following new agreement in principle with EDF

Ministers impose significant new safeguards for future foreign investment in critical infrastructure.

Following a comprehensive review of the Hinkley Point C project, and a revised agreement with EDF, the Government has decided to proceed with the first new nuclear power station for a generation. However, ministers will impose a new legal framework for future foreign investment in Britain’s critical infrastructure, which will include nuclear energy and apply after Hinkley.

The agreement in principle with EDF means that:

The Government will be able to prevent the sale of EDF’s controlling stake prior to the completion of construction, without the prior notification and agreement of ministers. This agreement will be confirmed in an exchange of letters between the Government and EDF. Existing legal powers, and the new legal framework, will mean that the Government is able to intervene in the sale of EDF’s stake once Hinkley is operational.

The new legal framework for future foreign investment in British critical infrastructure will mean that:

After Hinkley, the British Government will take a special share in all future nuclear new build projects. This will ensure that significant stakes cannot be sold without the Government’s knowledge or consent.

The Office for Nuclear Regulation will be directed to require notice from developers or operators of nuclear sites of any change of ownership or part-ownership. This will allow the Government to advise or direct the ONR to take action to protect national security as a result of a change in ownership.

There will be reforms to the Government’s approach to the ownership and control of critical infrastructure to ensure that the full implications of foreign ownership are scrutinised for the purposes of national security. This will include a review of the public interest regime in the Enterprise Act 2002 and the introduction of a cross-cutting national security requirement for continuing Government approval of the ownership and control of critical infrastructure.

These changes will bring Britain’s policy framework for the ownership and control of critical infrastructure into line with other major economies. This will allow the UK Government to introduce a consistent approach to considering the national security implications of all significant investments in critical infrastructure, including nuclear energy, in the future. The changes mean that, while the UK will remain one of the most open economies in the world, the public can be confident that foreign direct investment works in the country’s best interests.

Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, said:

Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the Government’s agreement. Consequently, we have decided to proceed with the first new nuclear power station for a generation.

Britain needs to upgrade its supplies of energy, and we have always been clear that nuclear is an important part of ensuring our future low-carbon energy security.

The Government is committed to ensuring the country has a secure low carbon energy supply. Hinkley Point C will be a critical part of that, and will inaugurate a new era of UK nuclear power - building on Britain’s strong nuclear legacy. Currently, the UK has eight power stations which generate around 20% of power in the UK. Almost all of these existing power stations are due to close by 2030. This underlines why the Government needs to take decisions now on how we will ensure we have sufficient and diverse supply fit for future generations.

Hinkley Point C will provide seven per cent of Britain’s electricity needs for sixty years. UK-based businesses will benefit from more than 60% of the £18 billion value of the project, and 26,000 jobs and apprenticeships will be created.

The collaboration between France and the United Kingdom underlines the continued strength of the bilateral relationship and the ongoing industrial and energy co-operation.

Notes to Editors

The Secretary of State is minded to direct the Low Carbon Contracts Company to offer a Contract for Difference to EDF. The Contract for Difference would provide a set price of £92.50 per megawatt hour of electricity provided by Hinkley Point C for 35 years once it begins generating. The difference between the strike price and the wholesale price is paid for through consumer bills, in the same way as other clean technologies such as offshore wind.

2 Source: Balancing Mechanism Reporting System (BMRS)

The BMRS website, www.bmreports.com/bsp/bsp_home.htm, provides near real time and historic data about the Balancing Mechanism which is used by the National Grid (System Operator) as a means of balancing power flows on to and off the electricity Transmission System in Great Britain.

The data examined is of all the wind that is connected to the National Transmission System but does not include wind connected to the local networks, which is not monitored. Around 8.9 GW or 8,972 MW of wind connected to the National Grid with another 5GW connected to local electricity networks.

BMRS is managed and operated by Elexon.

3 List of days in the year to 31st August 2016 when output of the installed and connected wind turbines in the UK have produced 10% or less of the installed and connected capacity of 8,972MW:

7th, 8th, 18th, 19th, 26th September 2015

2nd, 3rd, 4th, 8th, 9th, 18th, 19th October 2015

2nd, 3rd, 4th November 2015

13th December 2015

19th, 20th January 2016

24th, 25th, 26th February 2016

10th, 17th, 18th, 22nd, 23rd, 31st March 2016

14th April 2016

6th, 15th, 16th, 22nd, 27th, 28th May 2016

6th, 7th, 8th, 9th, 10th, 11th, 12th, 13th, 23rd, 24th, 25th June 2016

14th, 21st, 22nd, 23rd, 24th, 26th, 28th July 2016

1st, 5th, 14th, 15th, 18th, 23rd, 24th, 25th, 29th August 2016

4 GMB press release dated Monday, 1st August, 2016

Energy supply 'Gone with the Wind' says GMB

There Were Nearly 2 Months Of Low Wind Days Since The Start Of August 2015 When Wind Was Supplying 10% Or Less Of The Installed And Connected Wind Capacity To The Grid

Delays to Hinkley Point C power station demonstrate that when your electricity supply has “gone with the wind” the response of the renewable energy suppliers that “frankly my dear we don't give a damn” is just not acceptable says GMB.

In the year to 1 August 2016 every 1 in 6 days has been a low wind day (57 days in total) when the output of the installed and connected wind turbines in the UK have produced 10% or less of the installed and connected capacity of 8,972MW.

The days of low wind were 5 in August and September, 7 in October, 3 in November, 1 in December, 2 in January 2016, 3 in February, 6 in March, 1 in April, 6 in May, 11 in June and 7 in July. (See notes to editors for sources and definitions and the low wind dates since August 2015)

Justin Bowden, GMB National Secretary, said “Over the last 12 months there were 57 days when wind was supplying 10% or less of the installed and connected wind capacity to the grid and on 4th November National Grid had to invoke special measures to keep the lights on.

Everyone gets that over time sensibly sourced and UK produced renewable energy sources makes sense, but in the real world of the here and now we have to keep the lights turned on, homes heated and the economy functioning. This means that on the days when the wind doesn't blow and the sun doesn't shine we need a base load electricity capacity we can rely on.

It should not be difficult to get agreement that the only reliable low carbon alternative to renewables on the days they are not supplying power to the grid is new nuclear power stations. Sadly, there are people who refuse to face up to this fact. However, facts are stubborn things.

That is why the delay to Hinkley Point C power station, caused by Theresa May’s bewildering decision to review the go-ahead, demonstrates that when your heating is turned off, your lights have gone out and your electricity supply has “Gone with the Wind”, the renewable energy suppliers cannot just shrug their shoulders and tell the public “frankly my dear we don't give a damn”. The public want the lights to stay on, so until there is a scientific breakthrough on carbon capture or solar storage, then nuclear and gas are the only reliable shows in town which those advocating a renewable energy only policy have to accept.

GMB will publish a regular wind watch to assist public debate."

End

5 GMB press release dated Friday, July 29, 2016

GMB Condemns 'Bewildering And Bonkers' Government Delay On Hinkley Point C

Unnecessary delay puts project financing in doubt and 25,000 new jobs at risk immediately after Brexit says GMB

GMB, the union for energy and engineering construction workers, has condemned the Governments’ decision to delay confirmation on Hinkley Point C. The delay follows confirmation yesterday that EDF’s board had given the project the final go-ahead.

Justin Bowden, GMB national secretary for energy, said “Theresa May's decision to review the go-ahead on Hinkley Point C is bewildering and bonkers. After years of procrastination, what is required is decisive action not dithering and more delay. This unnecessary hesitation is putting finance for the project in doubt and 25,000 new jobs at risk immediately after Brexit. It is a gross error of judgement and must be reversed.

Building Hinkley will not on its own make up for successive governments' failure to have in place a coherent energy policy, but it is a very important step along that road and, as GMB has been warning now for months, the country's energy capacity is already so fragile that if we have a cold winter there is a high likelihood we will experience power cuts.

The ramifications of this foolish delay are far wider than putting our energy needs in jeopardy, they will immediately call into question other major infrastructure projects coming down the line like HS2 and Heathrow or Gatwick expansion."

End

6 GMB press release dated Wednesday, July 27, 2016

GMB Warns Looming Hinkley Point Decision Must Show Uk Is "Open For Business”

Hinkley Point C must get green light at EDF Board tomorrow if new Prime Minister is to reassure workers and investors after Brexit says GMB.

GMB, the union for nuclear workers, has commented as French energy giant EDF’s Board prepares to make its final investment decision on Hinkley Point C tomorrow(Thursday 28th July).

GMB warned that the 25,000 workers’ jobs resting on the outcome posed an “acid test” for new Prime Minister Theresa May’s Government. GMB, along with unions Unite, UCATT and Prospect wrote a letter to the chief executive of EDF earlier in the month (Friday 1st July) warning of the importance of confirming the financial go-ahead for Hinkley Point (see notes to editors for a copy of the joint letter from the unions).

If approved, a 3.2 GW nuclear power plant capable of generating 7% of the UK’s electricity would be built at Hinkley Point, powering 6 million homes.

GMB said government ministers’ assurances to international investors of continued commitment to nuclear power would be worthless unless they had also been able to secure a positive decision.

Justin Bowden, GMB National Secretary for energy, said "This decision is an acid test for Theresa May’s claims that the UK is open for business after Brexit with tens of thousands of jobs on the line. We've heard lots of warm ministerial words about the UK’s commitment to nuclear power, but these will remain hollow unless they are backed by a decision to invest that keeps the lights on, our homes heated, and the economy functioning.

The final investment decision on Hinkley Point C is fundamental to a balanced energy policy - something the country desperately needs and which the government has patently failed to provide. The UK is already at growing risk of power shortages from our over-reliance on unpredictable renewables. Ministers' claims of commitment to the UK nuclear industry are nothing short of worthless without the graft to secure a positive decision for workers and investors."

Phil Whitehurst, GMB National Officer engineering construction, said “There are at least 25,000 jobs at stake in this decision. A final decision to approve Hinkley Point would boost the UK’s industrial capability both nationally and regionally, with a £225 million boost to the South West and an expected 5,000 local people from Somerset working on the project alone.”

7 Letter to Chief Executive Officer Vincent de Rivaz dated 24th June 2016

Dear Vincent,

HINKLEY POINT C FINAL INVESTMENT DECISION

As the consultation between EDF Energy and Trade Union colleagues in the EDF Energy Central Works Council draws to a close, the UK Joint Trade Unions would like to put our view on the record. We ask that our view is given due consideration in the vital decision that now confronts EDF Energy.

It is important to say from the outset, that we support our French Trade Union comrades in their desire to ensure that EDF Energy remains a strong and financially secure international player and we support their objective of protecting employment and the pay and conditions of EDF Energy employees. It is fair to say that we have a different perspective on how best to achieve these aims. We summarise our perspective in this letter, in a fraternal spirit of solidarity with our French Trade Union comrades.

The UK Trade Unions are 100% in support of Hinkley Point C and believe that it is vital to make a final investment decision in a timely fashion soon after the consultation process is completed.

From an energy perspective, the UK needs the electricity. We are rapidly losing capacity and this process will continue as the UK coal stations and nuclear stations reach the end of their operating lives. At the same time, we are committed to making a transition to a carbon-neutral balanced energy policy in the UK, including nuclear and renewables. In this context, nuclear new build is already behind the curve; we cannot afford further delay and it is vital for EDF Energy to make a final investment decision now.

From a Trade Union perspective, we are very focussed on the socio-economic dimensions of the UK nuclear new build programme. Indeed, we have been at the forefront of developing this wide agenda with EDF Energy. Much is at stake in both France and the UK in terms of jobs, skills, social dialogue, industrial capability and prosperity into the future. This agenda is encapsulated in the 5 new Collective Agreements that we have devoted several years to develop and negotiate.

They include:

- Jobs based on direct employment.

- A new progressive model of collaboration and social partnership though agreed structures and behavioural standards.

- High-quality terms and conditions of employment for our members.

- Rigorous and transparent oversight and assurance processes to ensure that poor or exploitative labour practices are absent.

- A radically new approach to resourcing, to deliver a step change in the diversity of the workforce and to reach out and attract parts of our community that have historically not been well-represented in engineering and construction, notably women.

- Major investment in people and skills, supporting social mobility and ensuring that the engineering and construction skills base is maintained and developed.

- Major investment in leadership and supervision to engender a high-performing, respectful and supportive workplace culture.

- A collaborative methodology for driving safety, quality and productivity.

This is just a selection of issues that we have worked hard on to deliver positive change for our members and the wider community, providing a progressive employment model for the 21st century. It is not a given that other nuclear new build clients in the UK will adopt the same progressive approach. It would be a tragedy, in both France and the UK, if all this work and the extraordinary opportunities it provides were to be lost. The moment to make the decision is upon us and we have a genuine fear that any further delay will lead to the unravelling of all that we have fought so hard achieve.

We would appreciate your assurance that our views will be properly heard and taken fully into account by the EDF Board.

Yours sincerely,

Mr Tim Roache

GMB General Secretary

Mr Len McCluskey

Unite General Secretary

Mr Brian Rye

UCATT Acting General Secretary

Mr Mike Clancy,

Prospect General Secretary

8 Hinkley Point ‘Litmus Test’ On Post-Brexit Investment In Big Infrastructure Projects

The UK is already at growing risk of power shortages from our over-reliance on unpredictable renewables and our energy needs have not changed since last week says GMB.

Confirming the financial go-ahead of the Hinkley Point nuclear power station will be the first big litmus test that much-needed infrastructure UK projects will proceed, following the Brexit vote.

This is the message behind a letter from four trade unions – GMB, Unite, Ucatt, and Prospect – to the chief executive of EDF Energy, Vincent de Rivaz, as the French energy giant is poised to make the ‘final investment decision’ (FID) for the Somerset plant.

The letter said: “The UK trade unions are 100 per cent in support of Hinkley Point C and believe that it is vital to make a final investment decision in a timely fashion soon after the consultation process (between EDF and the French unions) is completed (on 4 July).

“Nuclear new build is already behind the curve; we cannot afford further delay and it is vital for EDF to make a final investment decision now.”

The unions regard the go-ahead for the £18 billion project, which would generate seven per cent of UK electricity demand, as vital in terms of providing thousands of jobs and ‘keeping the lights on’ in the years ahead. Because of delays, the start date for electricity generation has been put back to 2025.

The letter continues: “From an energy perspective, the UK needs the electricity. We are rapidly losing capacity and this process will continue as the UK coal stations and nuclear stations reach the end of their operating lives.

“At the same time, we are committed to making a transition to a carbon-neutral balanced energy policy in the UK, including nuclear and renewables.

“Much is at stake in both France and the UK in terms of jobs, skills, social dialogue, industrial capability and prosperity into the future.”

The unions laid out a template of what needs to happen for the future Hinkley Point workforce which includes: jobs based on direct employment; a radical new approach to recruitment to deliver a diverse workforce to attract those who have historically not been well-represented in engineering and construction, notably women; and high-quality terms and conditions of employment for union members.

The letter has been signed by the four general secretaries: Tim Roache (GMB); Len McCluskey (Unite); Brian Rye (Ucatt); and Mike Clancy (Prospect).

The letter adds: “It would be a tragedy, in both France and the UK, if all this work and the extraordinary opportunities it provides were to be lost.

“The moment to make the decision is upon us and we have a genuine fear that any further delay will lead to the unravelling of all that we have fought so hard achieve.”

Justin Bowden, GMB National Secretary, said “The decision to get on and build Hinkley Point C must be made now, without further delay. The UK is already at growing risk of power shortages from our over-reliance on unpredictable renewables and our energy needs have not changed since last week. The UK must have a balanced, low carbon energy mix including renewables, gas and nuclear power if we are to keep the lights on, our homes heated and the economy functioning.”

Kevin Coyne, Unite national officer for energy, said “The final investment decision by EDF Energy in Hinkley Point will be the first litmus test, following the Brexit vote that much-needed investment in large infrastructure projects is still coming on stream.”

Brian Rye, acting general secretary of UCATT, said “This is a vitally needed and ground breaking project. The decision on the final go-ahead on Hinkley will demonstrate whether foreign-owned companies are still prepared to invest in the UK. The government needs to ensure that they get this deal over the line.”

End

Photo Credit: EDF Energy

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