Cost of Hinkley Point C nuclear plant rises to £37Bn

The total lifetime cost of Hinkley Point C nuclear power plant could be as high as £37Bn, according to government assessment.

According to an assessment published by the government this week, the cost of Hinkley Point C, near Burnham-On-Sea, could be as high as £37Bn.

Critics of the scheme described the figure as shocking, saying it showed how volatile and uncertain the project had become, given that the same energy department’s estimate 12 months earlier had been £14Bn.

Officials from the Department of Energy and Climate Change (DECC) confirmed the figure was set in September 2015, when wholesale power prices were low, and would not affect bill payers.

A DECC spokesperson said: “Hinkley will generate enough low-carbon electricity to power six million homes and around £10 [a year] from [each] consumer’s bill will pay for it once it is up and running. We have set the strike price to protect bill payers if energy costs go up or down, so the cost of the project to consumers will not change,”

“Today’s report from the IPA (Infrastructure and Projects Authority) does not suggest that the lifetime costs of Hinkley have increased. It is a snap shot of the position at the end of September 2015.”

EDF said the £37Bn figure should be disregarded. “Hinkley Point C will generate reliable low-carbon electricity in the future, so a cost estimate based on last year’s depressed wholesale price is not relevant. HPC’s electricity will be competitive with other low-carbon energy options and consumers won’t pay a penny until the plant begins operating.”

The flagship energy project has been of great importance to the British government and in particular for the Chancellor, George Osborne, who campaigned hard and successfully for China to take a stake in the scheme.

 

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