# Commission Decision (EU) 2015/658 of 8 October 2014 on the aid measure SA.34947 (2013/C) (ex 2013/N) which the United Kingdom is planning to implement for support to the Hinkley Point C nuclear power station (notified under document C(2014) 7142) (Only the English version is authentic) (Text with EEA relevance), Division

Extent: E+W+S+N.I.

Table 12
Benchmark nuclear generation project
Source: UK submission ‘Answers to the Commission's questions received 16 September 2014’ based on publicly available documents (Bruce Power audit report — April 2007, p. 14.: Confirmed as a project rate of return in letter from CIBC World Markets Inc. to The Ministry of Energy, Ontario, 17 October 2005, http://www.rds.ontarioenergyboard.ca/webdrawer/webdrawer.dll/webdrawer/rec/67137/view/PWU_Exhibit_K11.3_fairness_opinion_bruce_20080613.pdf.PDF, Letter from CIBC World Markets Inc. to the Ministry of Energy, Ontario, 17 October 2005, http://www.rds.ontarioenergyboard.ca/webdrawer/webdrawer.dll/webdrawer/rec/67137/view/PWU_Exhibit_K11.3_fairness_opinion_bruce_20080613.pdf.PDF Bruce Power Fairness Opinion (CIBC World Markets Inc.) — October 2005, p. 5.
Project
Ontario Power Authority
Technology
Refurbishment of Bruce Power nuclear plant
Gearing
20-40 per cent
Real cost of debt (pre-tax)
6,20 per cent
Nominal target equity IRR (post-tax)
13,7-18 per cent (12,8-17,1 per cent adjusted for current UK interest rate)
Target project IRR
10,6-13,8 per cent (9,7-12,9 per cent adjusted for current UK interest rate)
Investment horizon (asset life)
25 years
Investment size
4bn CAD
Level of Revenue certainty
Fixed price CfD for remainder of plant life (25 years)
Level of construction risk
Lower — refurbishment, not new build, cost overrun sharing
Level of operating risk
Lower — staff cost overrun sharing, fuel cost pass-through
Level of financing risk
Lower — smaller capital project, shorter period
Contingent equity required
Unknown

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Source: https://www.legislation.gov.uk/eudn/2015/658/annex/A/division/10 (the official version)
Page: https://openlegislation.uk/eu-decision-2015-658/annex-A/division-10
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.