EDF delays UK nuclear project to 2027 and raises price by £3bn

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The logo of Electricite de France SA (EDF) is pictured on the facade of a building in Paris, France, August 5, 2018. Picture taken August 5, 2018. REUTERS/Regis Duvignau

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PARIS, May 19 (Reuters) – Britain’s first new nuclear power plant in decades is set to be delayed by about a year to 2027 and its price hiked by 3 billion pounds ($3.74 billion) EDF (EDF. PA), the French company behind the said project.

EDF previously updated its construction schedule for Hinkley Point in January last year, when it announced the plant would be delayed by six months to June 2026, with the cost rising by another £500m to 22 at 23 billion pounds.

Late on Thursday, it announced it was pushing back the start date for production of the first of two units of its Hinkley Point C nuclear reactor to June 2027 and estimated project costs at between £25 billion and £26 billion.

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He said the pandemic had severely limited people, resources and supply chains, restricting efficiency and did not rule out further delays.

“The risk of a further delay of both units is assessed at 15 months, assuming the absence of a new pandemic wave and no additional effects of the war in Ukraine,” the company said in a statement.

“In addition, the quantities of materials and engineering as well as the cost of these activities, including, in particular, marine works, have increased,” the company said, although it said it did not. would have no impact on UK consumers.

The next stage of the project is scheduled for the second quarter of 2023 with the lifting of the Unit 1 dome.

Rising costs will impact stock values, but the risk is known after EDF flagged it during first-quarter results, investment group Jefferies said in a research note.

EDF shares were roughly flat early Friday after falling on Thursday when the company warned nuclear outages would cost more than expected. Read more

The availability of the company’s French nuclear reactors has fallen to seasonal lows after corrosion problems affected the reactors, which will take several years to repair.

The problems could thwart President Emmanuel Macron’s plans for France to achieve carbon neutrality by 2050, which depend on the deployment of a new generation of EDF reactors. Read more

($1 = 0.8012 pounds)

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Reporting by Forrest Crellin, Jean Terzian and John Irish; edited by Richard Pullin and Barbara Lewis

Our standards: The Thomson Reuters Trust Principles.

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