The U.K.'s energy regulator Ofgem said it believes the network grid upgrade to connect the new Hinkley Point C nuclear power station in England and the electricity network can be completed for less than the 840 million pounds ($1.08 billion) proposed by National Grid PLC (NG.LN).
National Grid, owner of the electricity transmission system in England and Wales, submitted its economic case for the upgrade in March. Ofgem said Wednesday that it is challenging 20% of National Grid's proposed costs, particularly in relation to the treatment of how severe weather could delay construction of the grid upgrades.
Ofgem said it has launched a consultation and will make a final decision on whether the upgrade is needed and if so how it should be delivered by the end of this year.
A decision on what costs will be allowed for the upgrade would be made in late 2018 or early 2019, Ofgem said.
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(END) Dow Jones Newswires
August 30, 2017 02:43 ET (06:43 GMT)