Point Cs cost to consumers could surge to £50bn, says
could end up paying £50bn to support the new Hinkley Point
C nuclear project near Burnham-On-Sea, according to government figures
out this week, which are more than eight times the 2013 estimate.
latest forecasts have revealed that EDF's bid to build the first
new nuclear plant in a generation could cost energy bill payers
£50bn over the life of the project, well above the £6bn
bill that was estimated in 2013.
are likely to pick up a far greater share of the project costs because
the wholesale market price for electricity is falling steadily while
nuclear power construction remains expensive.
an agreement between the Government and EDF Energy, ironed out in
2013, Hinkley is guaranteed to earn £92.50 for every megawatt-hour
(MWh) of energy produced through a combination of wholesale market
prices and a levy on consumer energy bills.
the time Government said this would require top-up payments totaling
£6bn via energy bills to meet the "strike price",
but falling market prices have widened the forecast gap every year
latest report said the cost of supporting Hinkley will continue
to vary as the outlook for wholesale market prices shifts. In theory,
the deal protects consumer bills if market prices surge above the
£93/MWh mark but it also erases the benefit of cheaper market
prices which many believe are more likely in the future.
National Audit Office accused the Government of committing bill
payers to "a high cost and risky deal in a changing energy
said that pouring financial support into renewable energy would
prove to be a lower cost option.
a Government spokesman says that the Hinkley contract is "an
important strategic decision to ensure that nuclear is part of a
diverse energy mix."
nuclear plant is expected to generate seven per cent of the UKs
electricity needs for 65 years with zero carbon emissions.
wont pay a penny until Hinkley is built; it will provide clean,
reliable electricity powering 6 million homes and creating more
than 26,000 jobs and apprenticeships in the process," the spokesman
Energy also defended the deal, saying it is a fair one which will
keep the price of electricity stable. "The strike price agreed
with the Government has not changed. HPC will be good value for
consumers compared with alternative choices available in the 2020s,"