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Energy expert Alan Simpson accused the government yesterday of being "held to ransom" by nuclear giant EDF over the proposed Hinkley Point power station.
Tory Energy Minister Michael Fallon has revealed that a deal with the French state-owned energy firm is within weeks of completion.
Negotiations had broken down after a disagreement over the "strike price" - the guaranteed rate at which the government will pay for energy.
Liberal Democrat Energy Secretary Ed Davey attempted to look tough by insisting the government would not budge from £90 per megawatt hour.
But Mr Simpson pointed out even that was double the currently wholesale market price of £45 per hour.
He told the Star: "Who in their right mind goes into negotiations offering to pay twice the current market rate?
"It's not just twice the price now, it's also going to be index linked for 30 or 40 years.
"You've got to ask yourself why any government would make that sort of double-your-bill guarantee for that length of time."
Despite the criticisms, a deal appears to have been revived after the Department for Energy and Climate Change (DECC) relented to EDF's demands for a strike price closer to £93 per hour.
And Mr Simpson revealed that a source at EDF had said the company believed they now hold "the whip hand" over ministers in negotiations.
"My understanding of the negotiations is that they're about how long it will take the government to capitulate," said the Friends of the Earth adviser.
"EDF basically said to DECC that we'll come back to you with an offer and it's take it or leave it.
"It's no longer negotiations, it's more like pirates telling them what the ransom price is."
The £14 billion deal to build a third reactor at the Somerset nuclear facility would see the first new plant built in Britain since 1995.
A DECC spokesman said: "No agreement has as yet been reached.
"A contract will only be offered if it is value for money, fair and affordable, in line with government policy on no public subsidy for new nuclear and consistent with state aid rules."
