Hinkley Point C, the nuclear power station being built in Somerset, will begin operating a year later than planned and could cost up to £3bn more to build, it has been announced.
The plant’s developer, French energy giant EDF, has announced the findings of a review of the project near Bridgwater, which has faced disruption during the Covid-19 pandemic.
The start of commercial electricity generation at the site has been delayed, with a revised date of June 2027.
A previous estimate in January 2021 revised costs up by £500m to between £22bn and £23bn, with bosses at Hinkley Point C saying there had now been a budget increase of £3bn.
In an announcement to staff on Thursday evening (May 19), the project’s managing director Stuart Crooks said the changes would have no cost impact on British consumers or taxpayers.
EDF said a reduction in workers allowed on site due to Covid social distancing measures resulted in the loss of more than half a million days of critical work in 2020 and 2021.
Mr Crooks said: “You will all have experienced the severe impact of Covid-19 on the project over the last two years. You will remember how we suddenly had to cut numbers on site from more than 5,000 to around 1,500.
“For many months after that, we remained far below our plan for site numbers as our ability to fully ramp up activity was thwarted by the need for measures to prevent infection. Keeping workers safe with social distancing in canteens, buses and at work meant we had no choice but to become less efficient.”
Mr Crooks added Hinkley Point C’s supply chain was also still impacted having been “hit hard” during the pandemic.
He said in April 2020, 180 suppliers had been fully shut down, and as of February 2022 more than 60 suppliers were operating with “reduced productivity” due to Covid.
Mr Cooks added that a second wave of the virus had scuppered the previous six-month Covid impact estimate. In total, the start date for the plant’s Unit 1 has gone back 18 months since construction started in 2016, of which Mr Crooks said Covid-19 accounted “clearly in excess of 12 months.”
Adapting the plant's reactor design for UK-specific regulations has also been a factor, as it required more engineering time and materials.
Mr Crooks said marine works, including the installation of water cooling tunnels below the Bristol Channel, had cost more but were now in a “good position".
In March, a High Court judge dismissed a legal challenge from environmental groups over a permit to dump dredged mud at a site in the Severn Estuary off Portishead.
Mr Crooks said: “Running the site for longer and less efficiently during the pandemic also adds cost. We are facing the same issues as other major projects with UK-wide supply and labour shortages and inflation. We are working hard to mitigate these issues with cost always a key focus – as part of safety, quality, time and cost priorities.”
It is hoped when completed Hinkley Point C will be able to generate low-carbon electricity for six million homes over 60 years.
EDF said the plant was now needed “more than ever”, with the firm saying its “reliable” electricity could help the UK to move away from reliance on gas, which it said was driving up record energy bills and contributing to climate change.
The company said if Hinkley Point C were already in operation it could save customers more than £1bn this year alone, despite Business Secretary Kwasi Kwarteng recently saying the Government’s nuclear power push may initially increase energy bills.
Full construction of Hinkley Point C began in 2016. It was originally estimated the project would cost £18bn to build.
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