Hinkley Point C, the nuclear power station being built in Somerset, could now cost more than £30bn to complete due to inflation, it has been announced.
Last year the plant’s developer, French energy giant EDF, revised its estimate for finishing the facility near Bridgwater up by £3bn to between £25bn and £26bn, following a review of the project.
In a presentation of its annual results, the utilities firm told investors that while “the real cost remains unchanged” for one of Europe’s largest construction projects, “the estimated nominal cost at completion could reach £32.7bn”. This was based on inflation indexes as of 30 June 2022, amid rising costs for materials and labour.
Following the review last year, the start of commercial electricity generation at the site was also delayed, with a revised date of June 2027.
During the update EDF said: “The risk of further delay of the two units remains assessed at 15 months, assuming in particular the absence of additional effects of the war in Ukraine.”
It comes as the French-state backed firm plunged to €5bn euro (£4.46bn) loss as repairs impacted the group’s nuclear output for the year.
While EDF’s UK business saw a rebound to pre-tax profit of £1.12bn for 2022, due to higher charges for the energy it produced, it still posted an operating loss of almost £1bn, once depreciation and one-off impairments were taken into account. The firm’s energy supply business for UK households and business made a loss of more than £200m.
In December EDF announced the first of two nuclear reactors for the plant had been completed and was ready for delivery. It is hoped when finished Hinkley Point C will be able to generate low-carbon electricity for six million homes over 60 years.
Full construction of Hinkley Point C began in 2016. It was originally estimated the project would cost £18bn to build.
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