<p>The key commercial terms agreed for a proposed investment contract for Hinkley Point C include arrangements whereby the strike price could be adjusted in relation to:</p><p>operational and certain other costs (including balancing and transmission charges and business rates) at certain fixed points;</p><p>certain future changes in law (including in respect of specific nuclear taxes, and uranium and certain generation taxes);</p><p>arrangements whereby Hinkley Point C would be protected from being curtailed without appropriate compensation;</p><p>increases in nuclear insurance costs as a result of withdrawal of HMG cover or in certain circumstances where market cover in the nuclear insurance market is no longer available.</p><p>The strike price of £89.50/MWh is fully indexed to the consumer price index. This price benefits from an upfront reduction of £3/MWh built in on the assumption that EDF will be able to share the first of a kind costs of the EPR reactors across the Hinkley Point C and Sizewell C sites. If EDF does not take a final investment decision on Sizewell C, the strike price for Hinkley will be £92.50/MWh.</p>