The costs of upgrading Britain\u2019s energy grid for net zero threaten to spiral out of control, EDF has warned.<\/p>\n
The French energy company, which operates the UK\u2019s nuclear fleet, said a \u00a370bn programme to modernise the grid faced a tripling in construction costs, far outstripping initial forecasts.<\/p>\n
The energy supplier warned the companies charged with operating the UK\u2019s high-voltage transmission system have been hit by surging inflation<\/a> and lengthy procurement delays.<\/p>\n Rising prices mean that Labour\u2019s target to decarbonise by the end of the decade \u2013 under the Clean Power 2030 plan devised by Ed Miliband, the former energy secretary \u2013 could cost billions more than expected, much of which will be passed on to households through higher bills<\/a>.<\/p>\n The warning comes after Miatta Fahnbulleh, the new Energy Secretary, suggested this month that she could slow down the timetable of the power pledge in a drive to bring down living costs.<\/p>\n Officials previously estimated that upgrading the grid would cost at least \u00a370bn over the next five years, with the levies added to average annual power bills set to climb from \u00a344 to \u00a3105.<\/p>\n EDF\u2019s warning implies the final amount could be higher still.<\/p>\n The companies responsible for the \u201cgreat grid upgrade\u201d are National Grid, which operates the transmission grid in England and Wales, along with Scottish Power and SSE in northern Scotland.<\/p>\n The improvements are needed to connect new wind farms<\/a>, improve old power lines and ready the grid for soaring electricity demand from technologies such as heat pumps and electric cars.<\/p>\n EDF said it supported upgrading the network but warned that the 2030 scheme was now so expensive the whole project should be re-examined.<\/p>\n Josh Buckland, EDF\u2019s policy director, and Matthew Ball, its grid manager, warned in a blog post: \u201cWe estimate costs have risen two to three times since initial transmission operator forecasts \u2013 based on analysis of Ofgem\u2019s own documents.\u201d<\/p>\n They added: \u201cConnections are subject to increasingly severe delays<\/a>. Our own projects are suffering an average connection delay of two years, with the worst now over five years.\u201d<\/p>\n Simon Gallagher, the managing director of UK Networks Services, which manages grid connections for businesses, said that Clean Power 2030 is \u201cnot achievable as currently designed\u201d.<\/p>\n