PARIS (Reuters) - EDF (PA:EDF) hopes to announce a deal with Chinese investors to build a nuclear plant at Hinkley Point, Britain, in the coming days, the French utility's chief executive said on Sunday.
Jean-Bernard Levy said EDF was in final negotiations with its Chinese partners, but added he did not want to anticipate what would happen on Tuesday and Wednesday during a visit of Chinese President Xi Jinping to Britain.
"If all goes well, we will be able to announce major news in coming days; the first nuclear new-build in Europe since the Fukushima accident," Levy said on television station iTELE.
Levy defended the 92 pound per megawatt-hour power price that the British government will guarantee for 35 years.
"Britain is not giving guarantees to do us a favour, but because Hinkley Point will provide power 24 hours a day for 60 years. Security of supply has a value," he said.
The 16 billion pound project to build two Areva-designed EPR reactors was announced in October 2013, but financial problems at Areva (PA:AREVA) and long delays at two EPR reactors under construction in France and Finland have delayed the British project.
Levy said nothing about what size stake Chinese investors might take. Originally, China General Nuclear Corporation (CGN) and China National Nuclear Corporation (CNNC) were set to take a combined 30-40 percent.
"We expect to put in place a partnership with CGN, which has been our partner in China for more than 30 years," Levy said, without mentioning CNNC.
Levy also said he expected EDF would finalise its agreement to buy 51 percent of Areva's reactor unit Areva NP by the end of next year.
A source told Reuters this month the French government wants EDF and Areva to keep a combined 66 percent stake in Areva NP -- 51 percent for EDF, 15 percent for Areva -- and that EDF should look for one or more partners for the remaining 34 percent.
Levy also said French power prices would have to increase in coming years to finance the upgrading of EDF's nuclear fleet, estimated to cost 55 billion euros over the coming decade.
"We will regularly ask the government for acceptable increases," he said.
He declined to specify whether the next power price hike would be in line with the 2.5 percent increase on Aug. 1.
