Accounts would work something like 鈥減roject bank accounts鈥� and would ensure suppliers are paid on time

EDF's Hinkley Point C

EDF is considering using 鈥渃lient bank accounts鈥� to ensure contractors in the supply chain of its 拢16bn nuclear power station project at Hinkley Point get paid swiftly.

Speaking to 黑洞社区 this week, Humphrey Cadoux-Hudson, managing director of nuclear new build at EDF Energy, said he was keen to ensure that suppliers on the project had stable cash flows and it was an area the French utility was 鈥渨orking very hard on鈥�.

鈥淲e are keen to make sure that the money flows as it should do,鈥� he said.

He added that EDF was considering using 鈥渃lient bank accounts鈥�, which he described as 鈥渟omething like鈥� project bank accounts, as one of a number of 鈥渋nnovative鈥� ways of ensuring suppliers are paid on time.

Project bank accounts work by having a central account from which all suppliers in the supply chain are paid once their invoice is approved.

The mechanism is designed to stop payments being delayed as they flow through the supply chain.

The government, as part of the deal struck with EDF over the project, has claimed that 57% of all the work will go to UK firms. But this week a study by think tank Oxford Economics warned that UK firms should only expect to get 44% of the work.

However, Cadoux-Hudson dismissed the think tank鈥檚 study. 鈥淚 don鈥檛 know how they could possibly have come to that number,鈥� he said.

鈥淚 know what we鈥檝e done is go through contract by contract.鈥�

He added that EDF had even examined which firms were likely to win contracts in the second and third tiers of the supply chain to arrive at its 57% estimate.

Meanwhile, EDF also announced this week that it is working with the Nuclear Industry Association to establish an SME group, to disseminate information and share expertise to help SMEs win work on nuclear projects.
Vincent De Rivaz, chief executive of EDF Energy, said it would eventually help small firms win business 鈥渨orldwide鈥�.

Speaking to firms at a supplier engagement day he said: 鈥淚鈥檓 sure you will agree that there is now in the UK a real sense of momentum [to the Hinkley project].鈥�

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