Ofgem has told National Grid to shave 20% off the costs of connecting Hinkley Point.

The new nuclear power station which is being built in Somerset, will need a high voltage grid to connect it to the rest of the network. The orginal estimate for building the upgraded connection was £840 million.

Ofgem agrees the upgrade is needed but has told National Grid to cut its proposed costs by a fifth (approximately £168m), particularly in relation to the treatment of how severe weather could delay construction of the grid upgrades.

Savings could also come if National Grid puts the financing, construction and operation of the infrastructure upgrade out to competitive tender for a third-party to deliver.

Ofgem has launched a consultation on options for the upgrade. A decision on what costs will be allowed for the upgrade will be made at the end of next year.