French energy giant sets new budget parameters ahead of its annual shareholder meeting

Hinkley

EDF has admitted the cost of Hinkley Point C could rise to almost 拢21bn, 拢3bn more than its previous estimate.

Ahead of its annual shareholder meeting, the French energy giant said in a statement that the final cost could reach 拢20.7bn with a contingency-margin built in.

EDF said the cost would remain 拢18bn in nominal terms, the budget it had set last October, a figure it says has 鈥渁lways included a provision for risk and contingencies.鈥�

It added that EDF and China General Nuclear 鈥� which has a 33.5% stake in the project 鈥� have committed to provide 鈥�15% of additional capacity amounting to 拢2.7bn鈥� if needed.

The firm said it 鈥渟imply reflects normal, prudent good practice for any construction project to know that the money would be available in the case of more extreme scenarios.鈥�

EDF added that it doesn鈥檛 expect to use the extra cash as 鈥淗inkley Point C will be on time and on budget at 拢18bn.鈥�

The firm鈥檚 three other nuclear power plants, using the same EPR reactor which will be used at Hinkley, currently being built in France, Finland and China are all delayed and over budget.

The statement comes as reports suggest the Chinese government is drawing up secret plans to build two of its own reactors at Hinkley if the current deal collapses.

Former energy secretary Lord Howell told The Times that the Chinese have a 鈥減lan B鈥� for the project and believe they can build two Chinese reactors at Hinkley Point C on a faster timetable than EDF.

However, in response to the reports a DECC spokesperson said there is 鈥渘o proposal for the Chinese to build a reactor at Hinkley.鈥�

The spokesperson added: 鈥淓DF own the Hinkley site not Chinese investors. Approval is required via the Generic Design Assessment for anyone wishing to build their own reactor.鈥�

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