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Sizewell C Power Station: Construction

Question for Department for Business, Energy and Industrial Strategy

UIN HL3784, tabled on 8 November 2021

To ask Her Majesty's Government, in relation to the building of Sizewell C nuclear power station in Suffolk, (1) what is the basis for the claim that using a Regulated Asset Base (RAB) financing model for its construction “will add at most a few pounds a year to typical household energy bills during the early stages of construction and on average less than £1 per month during the full construction phase of the project” as stated in the BEIS press release of 26 October, (2) what capital sum would be subject to RAB, (3) how many households would pay, and (4) what rate of return investors would receive.

Answered on

22 November 2021

The Government remains in active and constructive negotiations with EDF over the Sizewell C project. No decisions have yet been taken and the negotiations will be subject to reaching a deal that is value-for-money and achieving all relevant Government approvals.

BEIS has published an Impact Assessment (IA) to support the Nuclear Energy (Financing) Bill which illustrates the cost savings of funding a generic nuclear plant through a Regulated Asset Base (RAB) model versus a Contract for Difference. The IA contains estimates of the capital costs and a range of rates of return.