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Written question asked by Lord Marlesford (Conservative) on Monday, 18 December 2023, in the House of Lords. It was due for an answer on Thursday, 4 January 2024. It was answered by Lord Callanan (Conservative) on Wednesday, 3 January 2024 on behalf of the Department for Energy Security and Net Zero.

Sizewell C Power Station: Construction

Question

To ask His Majesty's Government what assessment they have made of the projected cost of £20 billion for the construction of the Sizewell C nuclear power station; and what is the likelihood of that figure being exceeded.

Answer

In 2016, the Government negotiated the Contract for Difference for Hinkley Point C which fixes the cost of electricity provided by Hinkley Point C. There is no cost to the consumer until Hinkley Point C starts to produce electricity. The strike price is £92.50 per Megawatt-hour. The household bill impact depends on a variety of factors such as the future electricity generation mix, wholesale gas price, wholesale electricity price and decarbonisation pathway.

The Government is a co-shareholder in the Sizewell C project company with EDF. The Government has committed to invest c.£1.2bn in Sizewell C’s development. The project has been designated to benefit from the new Regulated Asset Base (RAB) model for nuclear, which will entail a levy on all licensed electricity suppliers in Great Britain; suppliers may choose to pass those costs to their consumers. The RAB model will include incentives on cost and schedule control, with the exact details finalised at the project’s Final Investment Decision.

The capital costs for Sizewell C are commercially sensitive, and subject to ongoing development and a live equity raise. We are therefore unable to discuss this further at this time.

Secondary information

Type
Written question
Reference
HL1286
Session
2023-24
Grouped for answer
Yes
Subjects
Construction Finance Sizewell C power station
Link
View this Written question on www.parliament.uk