Hinkley Point delayed another year as costs rise by £3bn

Grant Prior 3 years ago
Share

Completion of Hinkley Point C has been delayed by another year as the cost of building the giant nuclear plant is estimated to have risen by an extra £3bn.

Client EDF has confirmed the targeted start of electricity generation has been pushed back to June 2027 while final construction costs are estimated at between £25bn and £26bn.

Stuart Crooks, Managing director of Hinkley Point C said in a message: “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. In civil construction alone, having fewer people than planned means we lost in excess of half a million individual days of critical work in 2020 and 2021.

“Our supply chain was also hit hard and is still impacted now. In April 2020, 180 suppliers were fully shut down, but even as late as February this year, more than 60 suppliers were operating with reduced productivity due to Covid.”

Crooks said that in January 2021, EDF estimated a six-month Covid impact, assuming an imminent return to normal conditions, but the second second wave of Covid-19 stopped that happening.

He added: “In total, the start date for Unit 1 has gone back 18 months since construction started in 2016. In such a complex project, it wouldn’t be credible to say we can measure exactly how much of this is due to Covid-19 impact, but it is clearly in excess of 12 months.

“Other factors have affected the schedule and costs.

“Marine works have also cost more, although they are now in a good position – with legal hurdles finally cleared to allow the team to get on with the job.

“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.”

 

 

Latest news

Morgan Sindall contracts league champion for second year

Kier ranks second in closely contested race between majors
7 hours ago

New Year layoffs as Scottish modular house builder collapses

East Ayrshire Connect Modular falls into administration
7 hours ago

Thames Water bidders day for £2.2bn reservoir scheme

Tenders to be invited in October for new Abingdon reservoir in Oxfordshire
7 hours ago

Buckingham Plant Hire quits heavy kit market

Firm to sell fleet and focus on lighter, sustainable plant
1 day ago

Clients ‘ignoring building safety’ reforms

Clients still subjecting contractors to aggressive and sub-economic pricing
6 hours ago

Castleforge plans expansion after £100m data centre deal

Investor moves into booming data centre market
6 hours ago

Construction output growth drops to six-month low

Subcontractor rates rise at fastest rate for 18 months
1 day ago

Suir Engineering swoops for Scottish M&E contractor

Irish M&E firm launches UK expansion with Taylor & Fraser acquisition
1 day ago

Aggregates supply firm files administration notice

Ashville Aggregates and Concrete operates across London and South East
1 day ago

Plans in for 44-storey Manchester resi tower

Developer Glenbrook to appoint contractor this year
2 days ago

Briggs & Forrester names new engineering services MD

Will Newman replaces Ian Lawrence who steps down after eight years
1 day ago

Morgan Sindall bags Salford Uni acoustics building

Planning submitted for Acoustics Building at Crescent Innovation area
2 days ago

Lambeth to release six sites for £250m homes plan

Call for development partner to deliver 450 mixed tenure homes
1 day ago

Adrian Speller joins brother as joint MD of Midlands builder

Speller Metcalfe boosts senior leadership team
2 days ago

Winner unveiled for £2.9bn aqueduct revamp

Construction costs for Haweswater Aqueduct rise to £2.9bn from £1.75bn
5 days ago

Fortem and Equans face fight for £3bn housing upkeep deal

Birmingham City Council aims to sign new 10-year deals for four regions
2 days ago

Lendlease strikes deal to sell UK construction arm for £35m

US private equity firm Atlas to finalise purchase deal by summer
6 days ago

Hercules to offload suction excavator arm

Fleet of 30 trucks generates around £5m revenue a year
2 days ago

Tarmac trials new technique to cut concrete road noise

Quieter trips for drivers and longer-lasting roads
2 days ago

HS2 set for “fundamental reset” to lower construction costs

New chief executive promises action after latest project update
1 week ago

Solar panel installer fined £120,000 after roof fall

Court hears how employee broke his leg in fall
6 days ago

Network Rail chief Andrew Haines knighted

Thin pickings for construction in this year's New Year Honours
1 week ago

Staff stunned as engineering consultancy Clarkebond closes

Firm was only bought three months ago by rival Independent Design House Group
2 weeks ago

Vistry issues third profit warning in three months

Profit expected to fall £50m below forecast due to delayed completions
2 weeks ago

Miller Homes buys St Modwen Homes for £215m

Scottish house builder snaps up £368m turnover rival
3 weeks ago

Keltbray fine increased to £18m after failed bid rigging appeal

Contractor loses penalty discount for settling with competition authorities
3 weeks ago

Luxury house builder goes under with 70 job losses

Octagon Developments in administration after 40 years in business
3 weeks ago

Top Ten best read stories of 2024

The biggest headlines of an eventful year. Have a good one and here's to a successful 2025
3 weeks ago

BAM Nuttall fined £800,000 after concrete skip tragedy

Young labourer killed by falling bale arm
3 weeks ago

Keltbray infrastructure business reveals new name

AUREOS means "new dawn" after private equity acquisition
3 weeks ago

Contractor services