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Areva ups Olkiluoto compensation demand

The French-German nuclear contractor Areva-Siemens has increased its demand for compensation over an abandoned deal to provide the third reactor at the Olkiluoto nuclear power plant. The company is now demanding a total of 2.6 billion euros in compensation—an increase of 700 million euros on its previous demand.

Olkiluodon voimalat
Olkiluoto three. Image: Antti Laakso / Yle

The legal disputes around the third reactor set to be built at Olkiluoto in Eurajoki have taken a new turn. Both the Finnish consortium Teollisuuden Voima (TVO) and Areva-Siemens are demanding compensation from the other party.

The project has been delayed by at least seven years from its original start date of 2009, and the builder Areva-Siemens and the customer TVO have traded accusations as each tries to blame the other party.

TVO announced on Tuesday that Areva had updated its arbitration claim with an increased demand for compensation. The sum is now 2.6 billion euros—700 million euros more than originally claimed.

It includes 70 million in delayed payments by TVO, 700 million euros in penalty interest and 120 million euros in alleged loss of profit.

TVO is in turn still demanding 1.8 billion euros in compensation from Areva-Siemens. The plant is now provisionally slated to start producing power in 2016.

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