Developer EDF has said the cost of building Hinkley Point C has risen by 拢1.5bn
EDF has revealed the cost of the development of the UK鈥檚 first new nuclear power station in 30 years has increased by 拢1.5bn to 拢19.6bn.
The French utility giant and developer of Hinkley Point C attributed the majority of the cost increase to the firm gaining 鈥渁 better understanding of the design adapted to the requirements of the British regulators, the volume and sequencing of work on site and the gradual implementation of supplier contracts鈥�.
EDF undertook a review of the costs and timetable for the scheme following the firm鈥檚 final investment decision last September after securing additional investment from China General Nuclear and backing from the UK government.
The firm added that the project could also be at risk of nearly a two-year delay 鈥� 15 months for the first phase and nine months for the second 鈥� which could add an additional 拢700m.
The revelations come after an investigation by the National Audit Office (NAO) concluded that the deal to build Hinkley Point C 鈥渞isky and expensive鈥� based on an 鈥渦nproven鈥� design.
The report published by the NAO last month added: 鈥淭he [government] department [Business, Energy and Industrial Strategy] has not sufficiently considered the costs and risks of its deal for consumers. It only considered the impact on bills up to 2030, which does not take account of the fact that consumers are locked into paying for Hinkley Point C long afterwards. It also did not conclude whether the forecast top-up payments are affordable.
鈥淭he risks of failure are such that the government should have a 鈥楶lan B鈥� for achieving its objectives in the event that HPC is delayed or cancelled鈥�.
A spokesperson for the department for Business, Energy and Industrial Strategy said: 鈥淎s the developer has made clear the project remains on track to meet its first major milestone in 2019. The UK Government negotiated a competitive deal which protects consumers and ensures that all of the cost of construction, including any overruns, sits with the contractor.
鈥淗inkley Point C will be the first new nuclear plant in a generation. This was an important strategic decision to ensure that nuclear is part of a diverse energy mix in the UK. Consumers won鈥檛 pay a penny until Hinkley is built; it will provide clean, reliable electricity powering six million homes.鈥�
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