黑洞社区

The 拢16bn Hinkley nuclear project could yet be caught in years of legal wrangling after the Austrian government said it would challenge Brussels鈥� historic decision this week to give the project the green light.

The European Commission (EC) gave the go-ahead to the Hinkley Point C nuclear power project this week, after ruling the deal the UK government struck with EDF, the developer of the project, does not breach European state aid rules.

The EC said the government鈥檚 plans to subsidise the construction of the 拢16bn power plant were compliant , which it said would reduce the amount of taxpayer support given to the project.

The EC鈥檚 approval was the final regulatory hurdle for the project, which would be the first nuclear power station to be built in the UK for a generation.

The government and industry welcomed the decision, saying it will pave the way for a new fleet of nuclear power stations to be built across the UK.

However, industry delight at the approval was tempered by confirmation from the Austrian government that it would seek to challenge the EC鈥檚 decision in the European Court of Justice.

Last week Austria鈥檚 chancellor Werner Faymann and vice-chancellor Reinhold Mitterlehner sent a letter to EC president Jose Manuel Barroso saying Austria would 鈥渞eserve鈥� the right to take legal steps should the project gain a stamp of approval in Brussels.

Speaking to 黑洞社区 this week, a spokesperson for the Austrian government, which favours renewable energy over nuclear power, confirmed it would launch a legal challenge.

鈥淔or us it鈥檚 not fair to give that kind of subsidy to a technology that is quite established. It鈥檚 not wind or solar where we can see evolution in the future,鈥� the spokesperson said.

Austria has two months to file its legal challenge, which lawyers warned could delay the project by up to four years if EDF decides not to proceed with the project until it has certainty the EC鈥檚 decision will stand.

EDF this week said the EC鈥檚 case for approving the deal was 鈥渞obust鈥�, but declined to comment on the effect the Austrian challenge would have on the timing of its final investment decision, which had been delayed until the EC鈥檚 decision.

However, given EDF鈥檚 desire for certainty before proceeding, there remain fears the Austrian challenge could yet delay the project further.

An industry source said: 鈥淚t鈥檚 one of those problems that鈥檚 like a crack that鈥檚 just an inch wide but a mile deep.鈥�

Jonathan Branton, partner at law firm DWF, said the Austrian challenge would take 鈥渁t least two years鈥� to be resolved through the courts. 鈥淭hey can go faster but they hardly ever do,鈥� he said.

Branton added that even if the EC鈥檚 decision was upheld by the court there could be scope for a further appeal from the Austrian government, which could take a further two years.

鈥淭he bigger the case the longer it will take and this is a big one,鈥� he added.

Eliza Petritsi, partner at law firm Holman Fenwick Willan, agreed the court case would take 鈥渢wo to three years鈥� to resolve.

鈥淚 have one [unrelated] state aid case pending before the court that has been there since 2011,鈥� she said.