EDF raise Hinkley Point C costs by £3 billion
EDF have identified “challenging ground conditions” as the reason for Hinkley Point C running almost £3 billion over budget.
The overall figure is now between £21.5 billion and £22.5 billion, with the estimate last raised by £1.5 billion two years ago.
The French energy company have also announced that at present, the project runs the risk of being 15 months late.
Due to the nature of the funding for the project, neither taxpayers nor customers will have to further subsidise the bill initially, however, the cost of unit price will increase in the long term.
Investec analyst Martin Young stated, "This is clearly bad news for nuclear new build prospects in the UK, particularly in light of recent record low offshore wind prices.”
The new wind power, set to be delivered by 2025, is estimated to cost £40 an hour, while the Hinkley Point C is anticipated to cost £92.50 per megawatt per hour.
China General Nuclear Power Corp, who is the partner of EDF, have estimated the project will be completed in 2025, however, the chance of completion in 2026 has increased.
In a statement, EDF stated, "Cost increases reflect challenging ground conditions which made earthworks more expensive than anticipated, revised action plan targets and extra costs needed to implement the completed functional design, which has been adapted for a first-of-a-kind application in the UK context”.