EDF warns Hinkley Point C will be £8bn over budget

THE French energy company behind Hinkley Point C has warned the nuclear plant will suffer another one-year delay and come in up to £8bn over budget.

EDF, which will cover the extra costs, said the price of materials had shot up as a result of the pandemic, a global supply chain crunch and the war in Ukraine.

The company said the two reactors will cost between £25bn and £26bn, up from a previous range of £22bn to £23bn. It is the fourth budget increase from an initial estimate of £18bn when the contract was signed in 2016.

It was originally scheduled to be ready in 2025, before being delayed to 2026. Yesterday evening the plant’s launch was kicked back to 2027.

“People, resources and supply chain have been severely constrained,” EDF said in a statement last night.

It comes as MPS warned that the Government should “urgently” consider

whether to keep open Britain’s ageing nuclear power plants in an attempt to tackle the energy crisis.

The UK’S eight remaining nuclear power stations supply about 16pc of the nation’s electricity each year but all but one are set to close by 2028 as they reach the end of their safe lifespan following decades of operation.

Sir Geoffrey Clifton-brown MP, deputy chair of the public accounts committee, said there was “huge uncertainty” over commissioning replacement energy projects, while “we are seeing clearly” the risks of relying on imported energy, as Russia’s war on Ukraine disrupts global energy markets.

EDF’S Sizewell B station in Suffolk is the only member of the fleet not due to close by 2028. The company said last month it is considering keeping it open for at least 20 years beyond its planned closure date of 2035.

Westminster has been pushing for a nuclear renaissance in efforts to boost Britain’s energy independence and reduce its reliance on fossil fuels.

Boris Johnson wants eight new reactors built by 2050 to supply about a quarter of projected electricity demand.

While rising costs of metals, cement and labour are affecting numerous industries, the revised plan may revive a controversy over how expensive the technology is and whether further holdups are inevitable.

EDF has a 66.5pc stake in Hinkley Point C and China General Nuclear Power owns the rest.