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UK energy regulator Ofgem on 22 May confirmed its decision to cut the proposed cost of the Hinkley-Seabank project by £60 million.

The link, which is due to be completed in 2024, will connect the new Hinkley Point C nuclear power plant to the grid.

In October Ofgem set out the areas where it deemed National Grid Electricity Transmission (NGET) costs to be too high.

NGET wanted to spend £716m on the new link, but Ofgem’s decision reduces the cost to £656m.

Ofgem has determined this to be the efficient cost for delivering the project following consultation and analysis.

The cost will be spread over the next 45 years. Ofgem in October proposed to cut costs to the project by £80m. However, following consultation and analysis of new evidence, Ofgem said it is satisfied that some of these costs are appropriate and provide value for money.

These include:

£11.3 million of development costs in relation to the project’s T-pylons£5.8 million of additional costs in relation to project contingency£1.6 million of additional costs in relation to project management.

“NGET’s rate of return for delivery of the project will be set in line with Ofgem’s tough next round of price controls, RIIO-2, which are expected to be finalised later this year,” Ofgem said.

Photo: T-pylons will be used for most of the overhead line sections – the first new design for pylons in the UK country for almost a century

Date: Friday, 29 May 2020
Original article: neimagazine.com/news/newsuk-regulator-reduces-cost-of-hinkley-point-grid-link-7944844