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The cost of decommissioning 10 Magnox nuclear power stations across the UK has mushroomed by nearly 拢5bn since the original contract for the work was drawn up in 2014.

According to the National Audit Office (NAO) costs increases of around 拢3bn since its last report into the work three years ago meant the final bill for cleaning up the Magnox sites and making them safe could reach 拢8.7bn.

The original contract for the work, signed with Cavendish Fluor Partnership (CFP) six years ago, estimated the final cost at 拢3.8bn.

That contract, drawn up by the Nuclear Decommissioning Authority (NDA), was subsequently revised following a series of legal actions by unsuccessful bidders and a decision was taken to terminate the agreement nine years early.

In its latest report the NAO said CFP had completed most of the decommissioning work it was asked to do under the renegotiated contract, undertaking 拢2.72bn of work, representing 93% of what it was set to deliver over the five-year period.

But it also said CFP had only fully achieved fewer than half 鈥� 45 鈥� of the 97 targets around the expected physical condition of the sites at the end of the contract.

A new NDA subsidiary took on the decommissioning work in September last year.

The NAO report said the NDA was 鈥渃ontinuing to refine its estimates鈥�, and costs were likely to be subject to further change, 鈥渓argely because of the inherent uncertainties involved in cleaning up the UK鈥檚 nuclear sites.

鈥淲hen it let the original Magnox contract, it had underestimated the scale of work needed to decommission sites鈥� the report added.

Gareth Davies, the head of the NAO, said while the NDA had made progress in a number of areas 鈥渋t still needs to ensure it has a solid understanding of the condition of each Magnox site and the costs of cleaning them up鈥�.