Hinkley project costs could rise by over 10%

EDF, the French energy supplier estimated that completing the new Hinkley Point nuclear plant could cost 10% more than previously thought, the BBC reported.

The group, which is the project's main backer, said total costs was likely to rise by £1.5bn to £19.6bn, due to a "better understanding" of the construction work needed and UK regulatory requirements.

According to EDF, if the cost overruns materialised, its rate of return on the project would drop from 9% to 8.2%.

Monday's news initially weighed on the company's share price but by the close of trading they had recovered to trade 0.71% higher to €9.55.

A review by EDF further revealed the project could be delayed by up to 15 months. Such a delay on the reactors would add a further £0.7bn of costs, which prompted some experts raise questions over energy security.

However, EdF hoped to avoid delays and to be able to deliver the first of the two nuclear reactors by the end of 2025.

The Guardian quoted climate campaigner, John Sauven, executive director at Greenpeace UK who said: “Hinkley is already over time and over budget after just a few months of building work".

"Today’s news is yet another damning indictment of the government’s agreement to go ahead with this project.”

EDF was building two new reactors at Hinkley Point, which were expected to meet 7% of the country's electricity needs over 60 years.