EdF Throws Down Gauntlet

There was a very firm statement from Vincent de Rivaz of EdF at the Commons Energy and Climate Change Committee yesterday. "The responsibility is on the Government and us to deliver the CfD and transitional arrangements" he said. It was very obvious that the sub-text was a need for sufficient certainty on EdF's behalf to allow them to proceed to investment. However, interestingly he said that EdF did not expect consumers to take on construction risk - i.e. it should not explicitly feature in the CfD. It's difficult to buy this. Construction risk should be part of business as usual for EdF but it must feature to some extent in the CfD stike price because it is only through these revenues that EdF will make any margin on it prospective investment. Rupert Steele of Iberdrola/Scottish Power was somewhat more open on this question. Probably the most telling comment was de Rivaz's "If there is not clarity we will not invest". This was all about the need to have long-term certainty behind the CfD. Over to you Government - and in particular DECC!