The U.K. unit of French state-controlled Electricite de France SA (EDF.FR) has increased by 40% the estimated costs of its new-build nuclear power plants in the U.K., The Times reports Monday.

EDF is heading one of two consortia planning new nuclear power stations in the U.K. , following the withdrawal in March of Germany 's RWE AG (RWE.XE) and E.ON AG (EOAN.XE). The U.K. government has backed the construction of nuclear plants in an effort to keep the lights on while meeting targets to reduce environmentally-damaging emissions.

The cost of two new reactors at Hinkley Point, in southwest England, is now estimated to be around GBP7 billion each, based on EDF's experience of building a new plant at Flamanville, France, The Times says, without citing sources.

The U.K. newspaper says EDF Energy has briefed Centrica PLC (CNA.LN)--its partner in the project--about the rising costs, which the report says increases the likelihood of the U.K. company withdrawing from the joint venture, for which it is liable for one-fifth of the costs.

Last week, EDF Energy's Chief Executive Vincent de Rivaz said the company is likely to press ahead with its plans in the U.K.

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