Auditor says EDF should push back decision on Sizewell C investment
EDF should not make a final investment decision on the Sizewell C nuclear project until it has reduced exposure to its sister development, Hinkley Point C, according to France’s state auditor.
In comments published on Tuesday, the Cour des comptes also said the French nuclear company should not take on new nuclear developments at home or in the UK until it is better able to make a success of them.
Its statement comes following reports the cost of Sizewell C could hit close to £40bn, nearly double prior estimates given in 2020.
The Suffolk project has been bogged down by cost overruns and delay, which have been further fuelled by financial issues at Hinkley, EDF’s other development in Somerset.
Any further delays would likely bump up Sizewell’s final price tag further and come amid a push by Labour to revive the UK’s nuclear power capabilities.
The Cour des comptes told the FT the reported doubling in cost seemed “logical” given a wider pattern of nuclear energy projects proving pricier than expected.
In France, President Emmanuel Macron is looking to construct at least six now nuclear reactors, however the French auditor said EDF was not ready to do so.
Both the UK and its neighbour are drilling down on nuclear power in a bid to hit net-zero targets.
Sizewell C is expected to supply low carbon electricity to around 6m homes over the next six decades upon completion.
The Treasury is set to decide whether to push ahead with the project in this year’s multiyear spending review, it has been reported.
Responding to the Cours des comptes, EDF’s Chairman and CEO Luc Remont, noted the UK government had taken charge of financing the project, with limited participation from EDF. EDF holds less than 20 per cent equity in Sizewell C.
Remont said the company’s financing arrangement limited EDF’s exposure and made it possible to decorrelate decision-making on the final investment decision on the Suffolk project from refinancing issues at Hinkley Point C.
A DESNZ spokesperson said: “New nuclear power stations such as Sizewell C will play an important role in helping the UK achieve energy security and net zero, while securing thousands of good, skilled jobs and supporting our energy independence beyond 2030.
“It is expected to reduce the cost of the electricity system, boost our supply of secure homegrown power and generate major investment nationwide.
“The project is making good progress and a final investment decision on whether to proceed will be taken in the Spending Review.”