The National Audit Office (NAO) have released a condemning report on Hinkley Point C (HPC), stating the contract between Government ministers and EDF to construct an atomic reactor would provide "uncertain strategic and economic benefits".
The report summary, form the NAO's own website, which goes on to clarify that they "cannot say the Department [for Business, Energy and Industrial Strategy] has maximised the chances it will achieve value for money."
The NAO confirm the estimated construction cost, in 2016 prices, to be £18 billion, and a price of £92.50 to be paid per megawatt hour of electricity generated for the first 35 years, paid to NNB Generation Company, Hinkley Point C's operator.
The report states that "the Department's overall case for HPC has weakened since it agreed key commercial terms on the deal in 2013."
The NAO further report that other departments of the Government reviewed the deal but "did not sufficiently consider its costs and risks for consumers".
In addition to these cutting findings, the NAO address the design of the reactor itself: "The reactor's design for HPC is unproven and other projects that incorporate it are experiencing difficulties."
The risk that the operator of Hinkley Point, NNBG Generation, will have to come to the Government for additional funding is another risk identified, exacerbated by the financial weakening of EDF, and the aforementioned reactor design causing potential delays and spending.
The NAO recommend that those accountable for HPC in Government are identifiable. They suggest a review of mechanisms to ensure oversight structure are effective over the lifetime of the project. It's also recommended that periodical reviews of for supporting nuclear power.
