The CFD aims to significantly reduce the level of wholesale prices and the risk of volatility, as well as the risk of electricity demand. In addition, it covers a normal level of operating costs and risks. The guarantee eliminates financing and refinancing risk as well as liquidity risk. The risk of inflation is reduced by the indexation of the strike price to the consumer price index, which seems new compared to previous valuations, such as those embodied in Redpoint`s work, which thought that the strike price would decrease in real terms. While the DECC and Redpoint models may be useful tools, the relevance of this modelling work could be questioned to measure the changes that the notified measure would cause in relation to the „business as usual“ scenario. The main reason for this is that the modelling work carried out by DECC and Redpoint does not yield separate results for supporting kernel generators as a separate form of intervention, but has always taken into account the magnitude of EMR measures, particularly CFDs for several technologies and the capacity mechanism. EDF and CGN have signed the leaders of an agreement in principle for the development of Sizewell C in Suffolk for a final investment decision regarding the construction and operation of two EPR reactors. During the development phase, EDF will take an 80% stake and CGN 20%. In 2020, the Financial Markets Authority (AMF) fined EDF 5 million euros for misleading investors about the cost of Hinkley Point C in 2014.
In a press release issued in October 2014, EDF said that the UK government`s agreement had remained unchanged from 2013, when there were major changes to the financing plan that artificially increased EDF`s share price. AMF also fined EDF`s CEO 50,000 euros at the time.  The Hinkley Point C project is well advanced. It obtained planning permission, approval to build the EPR reactor and authorization for the nuclear site. There is a well developed supply chain with identified preferred bidders, who are already heavily involved in construction planning. Training according to the required qualifications is ongoing and there are working agreements with trade unions. Furthermore, for the reasons outlined in Section 8.1, the Commission cannot rule out that the project can obtain a return on investment that exceeds the corresponding swap rate plus 100 basis points, as envisaged under the DAGEI. (51) From the British Government`s perspective, the difficulty of this transition is compounded by the volatility of energy fuel prices and has led, over time, to a reduction in the capacity delivered.
Currently, private investors are not using enough production facilities to meet demand forecasts, while older, carbon-intensive power plants are expected to disappear. At this stage, it is not clear that the lack of adequacy of the generation and/or the diversity of supply constitute a market failure. If other types of structural problems were not identified that would make it difficult or impossible for private investment in production to meet demand needs, it would appear that the problems raised by the United Kingdom are temporary. Moreover, even if structural problems were to be identified, they could indicate the need for a regulatory response and not the granting of state aid. Conceptually, the question of whether there are market failures with respect to nuclear energy is relevant at two levels: first, at the broader level of electricity generation and, second, at the level of nuclear power generation in particular. „These agreements are not only innovative in terms of improved wage conditions compared to other agreements in the UK, but are bound by an agreement on a common social framework/pact that provides a good solid basis for labour relations.“ The investment contract is accompanied by direct agreements from the lender.