ANOTHER investigation into the controversial Hinkley C deal has begun.

Just two weeks ago, the European Commission approved plans for the £16bn nuclear power plant.

They had been investigating whether the subsidy deal between energy company EDF and the Government constituted as illegal State aid.

While the project was approved, the National Audit Office has now begun investigating the deal to make sure the subsidy price of £92 a megawatt hour represented value for money.

The NAO is a financial watchdog which scrutinises public spending on behalf of Parliament.

The move follows pressure from the House of Commons Environmental Audit Committee who wrote to NAO last week to reiterate their call for an investigation into the deal.

A statement from NAO said: “It is not the NAO’s role to question the merits of the Government’s policy objectives or to be part of the Government’s executive decision- making in regard to the proposed contract.

“Our work will cover the Department’s commercial approach to securing this deal and the proposed terms of the contract, to report to Parliament on value for money and the resulting risks which the Department must manage.

“We will also wish to identify lessons learned to inform decisions on future ‘contracts for difference’.”

The Stop Hinkley Campaign welcomed the news about the investigation. Spokesperson Allan Jeffrey said: “This is an extraordinarily bad deal, locking consumers into high prices until almost 2060.

“Worse still, it will use up most of the money available to subsidise non-fossil fuel energy, leaving almost nothing available for renewables at a time when their costs are plummeting.

“The European Commission’s ill-thought through decision has turned UK Energy Policy into even more of a dog’s breakfast than it was to begin with.

“Let’s hope the National Audit Office can inject some sanity into the situation.”

Energy supplier Ecotricity has said it is considering taking legal action against the deal along with the Austrian Government and Germany.

EDF, which hopes to build the new power plant, defended the funding, saying: “The approval from the European Commission demonstrates that agreements between the Government and EDF are fair and balanced for consumers and investors alike.”