Costs at Hinkley Point soar to £33bn
The cost of one of Europe’s biggest construction projects has soared to £33bn – according to media reports.
The Times has reported the work on the new nuclear power station at Hinkley Point in Somerset has risen as a result of inflation.
It was originally estimated that the project would cost £18bn when the scheme was first given the go ahead in 2106.
Setbacks and delays have already seen the cost of the scheme rise to £26bn and that figure has now increased once more.
The company behind the mammoth project, French owned EDF, has come in for heavy fire over the ballooning costs of the project.
Last week the French firm announced losses of €5bn euro (£4.46bn) as repairs impacted the group’s nuclear output for the year.
Luc Remont, chairman and chief executive of EDF, said: “The 2022 results were significantly affected by the decline in our electricity output, and also by exceptional regulatory measures introduced in France in difficult market conditions.
“Despite all the challenges, EDF actively focused on service and support for all its residential and business customers, and made every endeavour to ensure the best generation fleet availability for the winter period.”
Dr Paul Dorfman, Associate Fellow SPRU University of Sussex, said: “EDF has just reported one of the biggest losses in French corporate history.
“The fact is, EDF EPR reactor design costs have ramped everywhere it’s built with massive delays. So why on earth is UK Government even thinking about yet another white elephant at Sizewell C?”
In a statement to its investors, EDF revealed that the costs for the already over-budget project have increased due to inflation, which pushed up the price of materials and labour.
The company said: “Based on inflation indexes as of 30 June 2022, the estimated nominal cost at completion could reach £32.7billion.”
Hinkley Point C is expected to generate enough electiricty to power six million homes, helping to replace EDF’s existing fleet of ageing UK nuclear plants.
The new power station is due to be operational by 2027 or 2028.
