HINKLEY Point C is set to be delayed and costs are likely to be £500million more than expected, according to EDF.

The energy giant said "significant progress" has been made on the Bridgwater site, but the cost is now expected to be in the range of £22billion to £23billion.

This could be up to £500million more than originally thought, as previous cost estimates were between £21.5billion to £22.5billion.

And there is a delay on site too. The start of electricity generation from Unit 1 is now expected in June 2026, when it was expected to open at the end of 2025.

The Hinkley site reached a major milestone last summer, with EDF completing the 49,000-tonne base for the second reactor on schedule.

It came less than a year after completion of the first reactor’s base in June 2019.

READ MORE: Hinkley C celebrates major milestone as second reactor base completed on schedule

Once completed, Hinkley C will generate electricity for around six million, or seven per cent, of the country’s homes.

EDF said the delay and increased costs mean the expected rate of return from its investment will fall from between 7.6 per cent and 7.8 per cent to between 7.1 per cent and 7.2 per cent.

It added that a delay of nine to 15 months for Units 1 and 2 would cost around £700 million and knock the rate of return by a further 0.3 per cent.