A shift in Government policy on its support for new nuclear power stations has been blamed for delaying the deal for the company behind the £15 billion Moorside development, according to sources in Korea.

The Korea Herald, a daily English language newspaper based in Seoul, quoted a Korean government official who claims that the deal for NuGen is being renegotiated because the UK government’s decision to “change profit models for the project”.

Talks between NuGen’s current owners Toshiba and state-owned Korean utility Kepco are continuing, despite Toshiba stripping Kepco of preferred bidder status earlier this week due to the "prolonged time" to seal the deal.

The delay has led NuGen to undergo a restructure, placing its 100 staff and contractors at risk of redundancy including its chief executive Tom Samson, sparking calls from Cumbrian MPs and unions for the Government to intervene to ensure Moorside progresses.

The project has been described as a “transformational” for Cumbria’s economy and, if it goes ahead, would create thousands of jobs and generate around seven per cent of the UK’s energy needs.

The Korea Herald article says that the Korean government remains optimistic that the deal between Toshiba and Kepco can still be done, but a spokesperson says the change to the profit model for the project has “delayed it further”. The spokesperson added: “Toshiba wants to sell off the consortium as early as possible.”

Toshiba was left as sole owners of NuGen in 2017 when minority stakeholders Engie pulled out of the consortium after Westinghouse – the then subsidiary of Toshiba which was due to supply three AP1000 reactors to Moorside – filed for Chapter 11 bankruptcy protection in the USA.

Since then it has been pursuing the sale of NuGen, with Kepco emerging as preferred bidder in December.

A spokesperson for Toshiba would not confirm it is was in talks with other investors, but added that the process behind nuclear-related acquisitions was longer than for other industry sectors.

They said: “Toshiba continues to consider additional options including sale of its shares in NuGen to Kepco, and we are carefully monitoring the situation, in consultation with stakeholders including the UK government. We cannot comment on details.”

Representatives from Kepco flew to the UK earlier this week to hold discussions with both NuGen and the Department for Business, Energy and Industrial Strategy (BIES).

According to the World Nuclear News website, Kepco and BEIS agreed at the meeting to undertake a study looking at the profitability and risks of applying a regulated asset base (RAB) model to the Moorside project – which allows government regulators to ensure stable returns and finance through government support.

A spokesperson from BEIS said: “We continue to engage with new build developers, though the detail of these discussions is commercially confidential.”

Business and Energy Secretary Greg Clark has previously said the Government would consider the RAB model – which has been used in the electricity transmission and water industries – for future nuclear new build projects beyond the Horizon development at Wylfa Newydd, Anglesey, to ensure they deliver value for money.

The landmark Nuclear Sector Deal published by the Government last month pledged to drive down the cost of nuclear new build projects by up to 30 per cent by 2030.

The huge up-front cost of financing new nuclear projects is viewed as one of the biggest challenges faced by the industry and pressure has been mounting from both MPs and unions for the Government to take an equity stake to ensure they progress.