Hinkley nuclear plant faces new cost over-run of up to 拢2.9bn
EDF says the taxpayer will not be footing the bill after "challenging ground conditions" meant works cost more than anticipated.
Wednesday 25 September 2019 11:44, UK
The projected cost of building the Hinkley Point C nuclear power plant in Somerset has been raised again - by up to 拢2.9bn.
French energy firm EDF said that while the UK's first new nuclear power plant for a generation remained on track for its previously revised date of 2025, "challenging ground conditions" had forced it to revisit cost projections.
The latest estimates suggest increases of between £1.9bn-£2.9bn, taking the total cost up to £22.5bn.
It said there were no implications for taxpayers or consumers.
The original cost at the start of construction was £18bn.
The EDF statement said: "The management of the project remains mobilised to begin generating power from Unit 1 at the end of 2025.
"To achieve this, operational action plans overseen by the project management are being put in place.
"These involve the EDF Group's engineering teams in Great Britain and France, buildings and ancillary works contractors, and suppliers of equipment and systems throughout the supply chain."
Hinkley Point C managing director, Stuart Crooks, told workers: "We are delivering on our milestones and although the risk of a delay has increased, the schedule is unchanged and we remain focused on delivering the first power in 2025.
"We remain conscious of our responsibility to shareholders and consumers. As ever, I ask you to remain focused on safety, quality, time and cost as we build a power station whose value to future generations will be immense.
"Getting this far has cost more money than we anticipated. Our earthworks are complete, but challenging ground conditions meant we overspent to finish them on time."
The project, which will deliver 7% of total UK power output, has been marred by rows over the cost to energy bill-payers and whether new nuclear should be part of the country's energy mix.
It has, however, been supported by business groups, with the CBI arguing that the country can not rely on renewables - such as wind and solar - to secure a stable zero-carbon electricity network.
:: CBI makes nuclear case as Hinkley milestone reached
The government's nuclear ambitions have suffered several setbacks in recent years, with a number of schemes falling away because of funding difficulties including differences over the returns expected by investors.
They include the Moorside project in Cumbria and the Wylfa power plant on Anglesey.
EDF wants to build Sizewell C in Suffolk but concerns remain over the cost to energy customers of new nuclear.