Hinkley C up to 3 years late and cost could soar by £10bn

Aaron Morby 6 months ago
Share

Hinkley Point C is now expected to cost an extra £10bn to build and be delivered around three years later than programmed.

Developer EDF revealed the latest in a series of setbacks for the budget and timeline after completing design for the fitout.

It said this had given it clearer sight of the final outturn cost and schedule.

The cost of completing Hinkley is now put at between £31bn and £34bn.  Although, if completion of the first reactor unit is delayed to 2031 in its worst-case scenario, costs would rise to £35bn at 2015 prices.

The second unit would be online about a year after the first, according to EDF.

In 2022, after assessing the impact of the pandemic, EDF said the targeted start of electricity generation was  June 2027, while final construction costs were estimated at between £25bn and £26bn.

At today’s prices, the actual cost balloons to £46bn.

Hinkley Point C’s managing director Stuart Crooks, said that running the project for longer and the rising cost for civil construction meant the power station would cost more.

“We’ve put the dome on two years later than planned in the schedule we started with. Around 15 months of that delay was due to the global pandemic.

“Restarting the British new nuclear industry has been hard,” he said.

“We’ve had to train a new workforce, teach suppliers to build nuclear and like any other developer, change our design to meet British regulations.”

This meant 7,000 design changes, 35% more steel and 25% more concrete.

Crooks added that like any other major infrastructure project Hinkley had also faced inflation, labour and materials shortages.

Looking forward, he said that big lessons had been learned on reactor one, with the second unit now being built 20-30% faster.

While the taxpayer will not foot the extra spend, the cost revision comes at a sensitive time for the government.

Under the funding plan for construction of Sizewell C, the Government has agreed to allow construction costs for a new plant in Suffolk to be added to customers’ bills gradually over the course of the build programme.

This differs from the model for Hinkley C where EDF agreed to shoulder the risk on the project in return for an agreed electricity sale price that was substantially higher than the average rate.

 

Latest news

Mace lands £184m Oxford Science Park contract

Contractor to build trio of laboratory and office buildings
7 mins ago

Sir Robert McAlpine clinches £4bn Somerset gigafactory

2.6m sq ft car battery plant will require over 2,000 workers at peak construction
4 hours ago

House builder Hill Group tops £1bn turnover

Group's controlled development pipeline stands at £10bn
3 hours ago

Higgins wins 360 new homes job in south London

Firm will now work up planning for phase 2 of Brixton housing project
4 hours ago

Kier starts £48m Ealing high school job

Northolt High School to be rebuilt for 1,130 pupils
5 hours ago

Plans in for £64m Suffolk A12 upgrade

Work to start next summer on dualling and junction upgrades
4 hours ago

Man suffers multiple fractures in HS2 accident

Engineering firm fined after fall leaves worker in hospital for two months
3 hours ago

Go-ahead for Milton Keynes’ largest private rental project

Platform_ to build 20-storey scheme of 335 flat next to train station
3 days ago

A2Dominion reins in new-build and cuts development team

Housing association to stop private new build sales in big strategy switch
3 days ago

Sellafield partnership appoints final key delivery partners

Altrad and Kaefer bag £180m access, insulation and painting deal
3 days ago

Health centre canned as build costs double in four years

Devon NHS stands down plans for Health and Wellbeing Centre in Teignmouth
3 days ago

Family confirm death of Des O’Rourke

Deputy chair and co-founder of Laing O'Rourke dies aged 75
4 days ago

Plans approved for major phase of £2.5bn Salford Crescent

Crescent Innovation will help create global research hub
3 days ago

Deal to kick-start 3,000-home Northstowe town centre

Labour Government acts to unlock next phase of new town near Cambridge
3 days ago

Striking new-look for Canary Wharf HSBC tower

Large chunks of upper floorplate to be removed in major overhaul
4 days ago

Kier halves debt to £115m after strong trading year

Order book up 7% to £10.8bn with 85% of work secured for year ahead
4 days ago

Developer blasts “unfair” power charges on huge Liverpool site

Romal Capital unhappy about site power hook-up costs
4 days ago

Regal to start Wembley 1000-bed student scheme

Backer found to deliver £400m twin tower student scheme
4 days ago

Breyer Group bags £163m housing repair deal

Major repair and maintenance win from Kingston Council
4 days ago

VolkerFitzpatrick lands Piccadilly Line upgrade deal

Contractor to work on Cockfosters depot
4 days ago

26 face fight to renew spots on £1bn NEPO civils deal

Next generation framework to start in March 2025
5 days ago

Go-ahead for £170m King’s Cross life sciences office project

Innovative arched design to carry landmark building over railway tunnels
5 days ago

Mitie buys power contractor ESM for £8.5m

Building FM firm strengthens high voltage contracting offer
5 days ago

New vision unveiled for £5bn Liverpool Waters

More housing included in central docks area after Labour £55m funding boost
5 days ago

String of contract wins sees turnover surge 25% at Mace

Construction division sees revenue leap to £1.73bn
5 days ago

Morgan Sindall wins £32m Walsall waste centre

Contract will transform former metal factory site
5 days ago

Kier wins £30m Greenwich teaching block

London South East Colleges plans to spend £47m on Greenwich Campus redevelopment
6 days ago

Blenheim House Construction applies for administration

Surrey contractor employs around 80 staff generating £87m turnover
6 days ago

GMI chief jumps to Henry Boot Construction

Lee Powell will replace Tony Shaw as MD when he leaves at the end of 2024
6 days ago

Avant Homes makes £109m loss

House builder reveals huge loss just days after entering Crest Nicholson bid race
7 days ago

Contractor services