THE Hinkley Point C development would boost the South West economy by almost £4 billion, according to new figures.

Energy giant EDF has released an updated analysis of the economic and social benefits of Hinkley Point C, showing the benefits to the county economy should the scheme - the UK’s first new nuclear power station in a generation - get the go-ahead from the Government in the autumn.

During the building of the power station, the gross value to the regional economy will be over £200 million for each year of core construction - up from an initial estimate of £100m - the figures claim.

Meanwhile, EDF Energy has also announced South West firms have been successful in a competitive process to provide services to the proposed Hinkley Point C power station in contracts worth over £465 million, creating 650 jobs in the region.

Services set to be provided by regional companies include catering at the construction site, bussing of the workforce and accommodation management, as well as site utilities and infrastructure.

The figures are set to put pressure on the UK Government to approve the scheme, as contracts are subject to the project being given the go-ahead.

In a shock move last month, after EDF voted to give final approval for the controversial development, Prime Minister Theresa May said a final government decision would not be announced until the autumn.

Ken Owen, EDF Energy’s commercial director for the project, said Hinkley C had changed the way major infrastructure projects can build a local supply chain, working with the likes of the Somerset Chamber of Trade.

“Instead of taking the usual route of only approaching national companies we took a decision to help local businesses step up to the challenge of supplying such a major construction project," he said.

"We’ve been delighted with the response.

“Our innovative approach, working closely with Somerset Chamber of Commerce, has resulted in local companies winning business by matching our demand for safety, quality, value and scale.

"It has been hard work on both sides, but so worth the extra effort.”  

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More than 3,000 Somerset and South West businesses have already registered their interest on the project’s supplier database, he added.

Companies already awarded contracts as part of the scheme include firms in Bristol, Taunton, Bath, Exeter, Bridgwater, Chippenham, Glastonbury, Bideford, Weston-Super-Mare and Yeovil.

Among those set to benefit would be Somerset Larder, a catering supplier, with construction workers set to spend around £8 million a year on meals provided by the company.

Dale Edwards, from the Somerset Chamber of Trade, said: “The increase in value of awarded contracts of a further £240million to South West supplier alliances is exciting and encouraging news.

"Along with EDF Energy, the Somerset Chamber’s Hinkley Supply Chain Team has been working hard behind the scenes with these and other local supplier groups, helping them get into the best position to bid for work at Hinkley Point C, so news like this is always very rewarding.

"This is real evidence of the way in which EDF Energy is using Hinkley Point C to transform the way large infrastructure projects can engage and develop local and regional supply claims.

"It also highlights to other businesses across the South West that the opportunity to be part of this once-in-a-generation project is real, vast and already bringing substantial investment and growth to our whole region.”

Elsewhere, the workforce bussing contract is set to manage the anticipated 5,000-plus daily passenger return journeys to and from the construction site, while the accommodation management contract will service the 1,500-bed workers’ accommodation campuses.

Somerset County Gazette:

South West companies with combined contract values of more than £465m include:

  • Somerset Larder, six Somerset food producers – catering for the workforce at the HPC site and associated developments
  • HOST, comprising four Somerset companies – managing the workers’ campus accommodation
  • Somerset Passenger Solutions, two Somerset companies – operating and managing a bus service to transport workers to and from site
  • Somerset Infrastructure Alliance, three South West companies – maintenance of the temporary construction and permanent roads, networks and other infrastructure
  • COMA,  five South West businesses – maintenance and modification of the site-wide temporary utilities, including electrical, water and waste networks and support services
  • FACE, three Somerset companies and one from London – reprographics, print, design and stationery
  • TCi (GB), Bideford – supply of office furniture, fittings and equipment
  • M&W Group, Chippenham – HVAC (heating, ventilation and air-conditioning) for buildings on site

The Hinkley Point C project itself has also opened new offices in Bristol, with some 750 employees due to be based at the Delivery Command Centre in the city’s Finzels Reach area from next month.

Together with EDF Energy’s supply chain partners, a total of around 1,500 highly skilled, well-paid jobs will be attracted to the Bristol area, worth around £120m a year during construction, worth more than £1 billion in wages alone over the life of the project.