The forecasted cost of building the UK鈥檚 first new nuclear power station for decades has gone up from a range of between 拢19.6bn and 拢20.3bn to between 拢21.5bn and 拢22.5bn (at 2015 prices).
That is an increase of 拢1.9bn to 拢2.9bn compared to the previous estimate.
A review of the project鈥檚 costs, schedule and organisation was conducted after the milestone completion in June of the nuclear island 鈥榗ommon raft鈥� for the first unit, in line with the schedule announced in September 2016.
The review has concluded that the project remains on course to hit its next big target 鈥� completing the common raft for Unit 2 in June 2020.
However the cost projections have increased and the range depends on the effectiveness of action plans to be delivered in partnership with contractors, EDF Energy said.
It said: 鈥淐ost increases reflect challenging ground conditions which made earthworks more expensive than anticipated, revised action plan targets and extra costs needed to implement the completed functional design, which has been adapted for a first-of-a-kind application in the UK context.鈥�
EDF Energy of France is developing Hinkley Point C in joint venture with China General Nuclear Power Group (CGN).
Under the terms of the contract for difference deal that the two companies negotiated with the UK government, agreeing a price for the energy generated, there is no impact for UK consumers or taxpayers as a result of the construction cost increases, they said.
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