Government and EDF Energy finally agree rate of £92.50 per megawatt-hour.

The agreed rate is more than double the going rate for wholesale electricity, meaning the energy generated from the new plant will be extremely expensive compared to other nuclear power plants.

The new Hinkley nuclear reactor in Somerset will be built, and should be operational within 10 years.

Agreement of the strike price is required so that EDF can be sure the plant will be profitable once it is operational.

With the going rate for wholesale electricity at around £45/MWh, EDF will receive an extra £47.50 for each MWh produced. This money will come from consumers bills, not government finds though.

EDF is considering building another reactor in Sizewell, Suffolk. If it does so, the strike price for both will be set at £89.50 to reflect the greater economies of scale that can be achieved.