News |

TVO and Areva Trade Compensation Claims

Power utility Teollisuuden Voima (TVO) is demanding 2.4 billion euros in fines and damages from French company Areva and its consortium partner Siemens.

Havainnekuva suunnitellusta Olkiluodon neljännestä ydinvoimalasta.
Havainnekuva suunnitellusta Olkiluodon neljännestä ydinvoimalasta. Image: TVO

Areva and Siemens' construction of a nuclear power reactor for TVO is now around three years behind schedule.

The French business newspaper Les Echos reports that Areva and Siemens fired back with a one-billion-euro demand for compensation from TVO, whom they blame for the delays. Finland's fifth nuclear reactor is under construction at the existing Olkiluoto plant in Eurajoki on the west coast near Pori.



The reactor was supposed to be ready this year, but it won't be completed until June of 2012 at the earliest. TVO is demanding compensation for the delay, which will force the company to buy power elsewhere until the reactor is complete.



Areva and Siemens, on the other hand, base their billion-euro compensation claim on their view that TVO caused the tardiness by dragging its feet in the approval of certain documentation.



The Olkiluoto-3 reactor is reported to be around 50% over budget. TVO has said it will not share in the losses accrued from the cost overrun.

Greenpeace: Consumers Will Foot the Bill

Last spring, TVO asked the state for permission to build a fourth reactor at Olkiluoto. No decision has yet been made on that application.

The environmental group Greenpeace says that the dispute between the main construction partners is a sign that future nuclear building plans should be scrapped. The NGO says it is clear that at least one side in this venture will suffer "astronomic" losses. Greenpeace argues that Finnish consumers will end up footing much of the bill.

Latest in: News

Headlines

Our picks

Latest

Muualla Yle.fi:ssä