To ask Her Majesty's Government what proportion of any cost overruns in the construction of Sizewell C nuclear power station in Suffolk would be passed on to (1) consumers, and (2) taxpayers, under the Regulated Asset Base financing model.
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 value for money deal and relevant Government approvals.
A nuclear project would be subject to detailed value for money assessments before being approved for a Regulated Asset Base (RAB), or awarded a Government Support Package (GSP).
Under a RAB model, risks are shared between investors and consumers. This will facilitate private investment into new nuclear projects, thereby reducing the cost of capital, and ultimately costs to consumers. My Rt. Hon. Friend the Secretary of State would take costs to consumers into account when modifying a licence for a nuclear company to insert a RAB, as well as considering our decarbonisation targets and the need to ensure future energy security. An economic regulatory regime will incentivise the project and its investors to manage costs and delivery effectively, to ensure the project is on time and to budget. The GSP would offer Government protection for investors and consumers from low probability but high impact events.