EDF Raises Hinkley Point Completion Costs by GBP1.5 Billion

French electricity company Electricite de France SA (EDF.FR) said Monday the cost of completing the Hinkley Point nuclear power plant in the U.K. is rising and its rate of return on the project has declined.

EDF estimates costs have risen by GBP1.5 billion to GBP19.6 billion and its projected rate of return has declined to 8.5% compared to 9% initially.

The additional costs result from a better understanding of the design adapted to U.K. regulations, the volume and sequencing of the work and the implementation of supplier contracts, EDF said.

A risk of further deferral would entail a potential cost of about GBP0.7 billion and the rate of return falling to 8.2%, EDF said.

Write to William Horobin at william.horobin@wsj.com

(END) Dow Jones Newswires

July 03, 2017 03:50 ET (07:50 GMT)