Hinkley Subsidy May Reach 37 Billion Pounds, Twice Last Estimate

Subsidies promised to Electricite de France SA by the U.K. for power generated from the Hinkley Point C nuclear station are projected to reach 37 billion pounds ($48 billion), more than twice the estimate made a year ago, according to data published on a government website Thursday.

The estimate reflects the difference between the 92.50 pounds that the government has agreed to pay per megawatt-hour for 35 years and new long-term forecasts for wholesale electricity prices. In June last year, the figure was 14.5 billion pounds. U.K. month-ahead power dropped 11 percent in the year through September 2015 and has declined a further 7.6 percent to date, according to broker data compiled by Bloomberg.