Ministers delivering ‘terrible signal’ over delay to £1.3bn tidal lagoon project

The backers of Swansea’s tidal lagoon power project have cautioned the federal government it risks ruining its status among investors by ongoing to ­delay a choice around the £1.3bn plan.

Inside a letter towards the Treasury, seen by The Daily Telegraph, 28 high-profile shareholders accused ministers of delivering a “terrible signal” to entrepreneurs that may prove “extremely damaging” for their status.

The letter was signed by City figures and veteran energy industry players in addition to serial entrepreneurs including Adam Bolan and Richard Reed, the co-founders of Innocent drinks.

The Conservatives gave their blessing towards the project within the 2015 election manifesto but have yet to consider on whether or not to support it. Philip Hammond, the Chancellor, stated the Treasury was carefully thinking about the proper rationale for that project.

The plan needs a revenue stream of £89.90 per megawatt hour of electricity it delivers towards the grid.

Mr Hammond stated he’d provide clearness when they can achieve this.

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