EDF says UK nuclear plant could cost extra $3.6 bln, expects further delays

The company said that cost increases are due to “challenging” ground conditions. (File photo: Reuters)

French utility company EDF said on Wednesday that the Hinkley Point C nuclear plant in the UK could cost up to an additonal 2.9 billion pounds ($3.6 billion) and that delays are expected at unit one and two of the project.

The project’s completion cost is now estimated between 21.5 - 22.5 billion pounds ($26.8 - $28 billion), state-controlled EDF said in a statement.

“The range depends on the effectiveness of action plans to be delivered in partnership with contractors,” EDF added.

The company said that cost increases are due to “challenging” ground conditions that made earthworks in the area more expensive than expected.

“Under the terms of the Contract for Difference, there is no impact for UK consumers or taxpayers,” it said in the statement.

The 3,200 megawatt plant is slated to be completed by the end of 2025 and will provide electricity to around six million homes in Britain.

Over the plant’s 60-year lifespan, the electricity generated from its two reactors is expected to offset nine million tonnes of carbon dioxide emissions each year.

EDF’s shares on the Euronext Paris were down 6.6 percent at 12:38 CET following the announcement.

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Last Update: Wednesday, 20 May 2020 KSA 10:00 - GMT 07:00
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