Hinkley Point C is costing billions of pounds over budget and is running late by more than a year, admitted the French state-owned company EDF.
The cost of two new reactors at the plant in Somerset could increase by £2.2bn to rreach £20.3bn, reported The Guardian. This is the latest cost revision after a previous revised from £16bn to £18bn as a result of inflation.
Expected to go online in 2025, the first reactor will now be 15 months late, while the second reactor is expected to be nine months behind schedule.
According to EDF, the £1.5bn increase in cost was because of a ‘better understanding’ of the construction work required, as well as that of the regulatory requirements of the UK. Another £0.7bn increase in cost was attributed to the estimated delay on the reactors.
EDF expects to stick to deadline of 2025 despite the projected delay.
Two nuclear power stations in France and Finland that feature the same design are also running late and are over-budget.
Last month, the spending watchdog National Audit Office claimed that the deal signed between EDF and the UK Government for the construction of Hinkley Point C offers ‘uncertain strategic and economic benefits’.
NAO stated the UK Department for Business, Energy, and Industrial Strategy’s deal for Hinkley Point C has ‘locked consumers into a risky and expensive project’.
Two-thirds of the project is being funded by state-owned French firm EDF, while the remaining £6bn by China.