Getty Hinkley Point C will be the UK's newest nuclear power station in a generation

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The Government admitted an agreement made in September last year over the Hinkley Point C nuclear power station means operators EDF can claim compensation if there is a change in British, EU or international law, policy or guidance, which forces the £24bn project to close early. Richard Harrington, the energy and industry minister, confirmed the payments could be “up to around £22bn” in a written answer to Labour’s Dr Alan Whitehead at the beginning of July. Mr Harrington said: “We remain firmly committed to bringing forward the UK’s first new nuclear power plants in a generation.

Payments to EDF could be up to around £22bn Richard Harrington MP, Energy Minister

“The Hinkley Point C contracts make provision for compensation in certain defined circumstances. The details of when these apply are set out in the agreements. “The consequences of the intended withdrawal from the Euratom Treaty will be closely monitored and the department is in close consultation with the industry about its impacts. “The Government will continue to support Euratom and to ensure that the UK continues to meet its international safeguards, and nuclear non-proliferation obligations and support its thriving nuclear industry.”

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Just days before he confirmed if the Government prevents the construction or operation of Hinkley, or if there is a “political shut down” by a UK, EU or international Competent Authority, “payments could be up to around £22bn excluding non-decommissioning operational costs that may be incurred after any shutdown”. Days later, he confirmed the UK intends to withdraw from the Euratom Treaty, which established the European Atomic Energy Community, when Brexit happens in March 2019.

Despite possibly being eligible to receive billions of pounds in compensation, EDF would rather the UK stayed in the Euratom Treaty once it leaves the EU. Hinkley Point C in Somerset, which will have two new nuclear reactors, will be the UK’s first new nuclear power stations in a generation.

Getty EDF, the British government and the Chinese government signed the Hinkley contract last year

The project has been controversial since the start, with ministers deciding to guarantee the operators, EDF and the Chinese government, £92.50 for every unit of electricity - more than double the current market price. EDF told Express.co.uk the Euratom Treaty, which is legally separate from the EU but with the same membership, would need to be replaced if nuclear power stations were to continue operating in the UK.

Getty A stipulation in the contract means EDF could be in line to get £22bn compensation

Getty The Euroatom Treaty is a nuclear power agreement with the other EU countries

A spokesman, said: “EDF Energy believes that it is in the best interests of the UK to remain in the Euratom treaty. “If the UK withdraws from the treaty, it is essential that alternative or transitional arrangements are put in place in time to ensure the uninterrupted operation of nuclear power stations and the continuing transfer of expertise and skills covering existing operations, new build and research and development .

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