of building Hinkley Point C near Burnham rises by £3billion
Energy has warned this week that the cost of building two nuclear
reactors at Hinkley Point near Burnham-On-Sea could reach nearly
£21billion - about three billion more than it said in October.
cost of the Hinkley Point C project includes a 'contingency margin'
which could reach £13.8billion for EDF and £6.9billion
for Chinese partner CGN, making a total of £20.7billion.
In October, EDF put the total financing at £18billion.
on Thursday EDF added that the projected rate of return on Hinkley
Point C is estimated at around 9 percent over the life of the
project, but it said that every six months of delay would reduce
the rate of return by about '20 basis points'.
will do everything we can to make sure there is no delay,"
Chief Executive Jean-Bernard Levy said at a meeting of shareholders.
firm also said it expects it to take 9.5 years to complete the
build of Hinkley C between a final investment decision until commissioning
of the first reactor.
final investment decision has been delayed several times and last
month, French Economy Minister Emmanuel Macron said he expects
a decision this September.
the decision is taken in September, Hinkley C would start generating
power in the spring of 2026.
a further statement issued after the close of stock market trading
on Thursday evening, EDF said it does not expect any additional
costs beyond £18 billion and that contingency arrangements
are normal practice for any construction project to ensure money
is available "in case of more extreme scenarios".
don't expect to use the additional 15 percent (of equity) as we
expect Hinkley Point C will be on time and on budget," said
EPR reactors of the type that EDF plans to build in Britain have
suffered years of delays and billions of cost overruns.