Since December, the commission has been examining whether funding for the £16bn plant, to be built by EDF Energy, broke state aid rules.

Antoine Colombani, the commission’s spokesman for the EU’s competition commissioner Joaquin Almunia, said on 22 September: “Our discussions with the UK authorities have led to an agreement. On this basis, vice-president Almunia will propose to the college of commissioners to take a positive decision in this case. In principle a decision should be taken within this mandate.”

Prospect deputy general secretary Garry Graham said: “This is great news. Prospect has been lobbying for nuclear new build as a key component of our energy mix as we move to low carbon energy generation.

“New nuclear will provide safe, reliable, low-carbon energy generation for the UK and deliver energy security and much needed capacity. We keenly await the commission’s final decision.

“Hinkley Point C will attract over £16bn of investment and provide thousands of high-quality skilled jobs in its construction. Once operational, HPC will provide more than 6% of the UK’s electricity and be part of the backbone of low-carbon base load generation for decades to come.

“A positive decision will also provide a much needed confidence boost across the industry and to other new-build projects. The UK has a real opportunity to be a world leader in low-carbon nuclear generation. Ensuring that we have the necessary investment and capacity for a world class workforce will benefit the UK economy and consumers.”