Consumers face higher energy bills to pay for new nuclear power. EDF wants to recoup some of the £20bn cost of the new Sizewell C plant in Suffolk before it starts producing electricity. Households face higher energy bills to help pay for the planned £20bn Sizewell C plant in Suffolk as the Government seeks to replace the UK’s ageing nuclear power stations. Ministers are preparing to introduce legislation so that nuclear developers can recoup some of their costs through energy bills while a new plant is being built, rather than having to wait until it has been developed, the Financial Times reported. Supporters stress the so-called regulated asset base model can help cut the huge costs of nuclear power because it reduces risk for developers, although critics argue it unfairly heaps risk onto consumers. EDF has been in negotiations with the Government since December over a funding deal for its proposed Sizewell C plant amid public debate about the role nuclear power should play in the energy ecosystem. It was estimated in 2019 that energy bills could rise by about £6 a year if the regulated asset base model is used for Sizewell. The financing model is used for other infrastructure projects such as the Thames Tideway Tunnel but not yet for power generation, meaning new legislation is needed. The nuclear industry has been increasingly vocal in recent months about the importance of replacing the UK’s nuclear plants, most of which are due to close by the end of the decade.
Telegraph 7th July 2021 read more »
Ministers are said to be preparing to legislate for a new nuclear funding model this autumn as EDF pushes for the go-ahead for a proposed £20 billion plant in Suffolk. The government has been in formal negotiations with the French energy giant since December over funding for the Sizewell C project, which would be a sister station to the Hinkley Point C plant under construction in Somerset. Sizewell C would be 3.2 gigawatts in capacity, capable of generating enough power to meet 7 per cent of Britain’s electricity needs. The government has said it is considering adopting a “regulated asset base” funding model for the project, which would lead to consumers starting to pay for the plant on their energy bills even while it is still under construction. Ministers are also considering taxpayers taking a direct stake in the project. The Financial Times reported yesterday that ministers aimed to unveil legislation in the autumn to enable a regulated asset base model to proceed. EDF told The Times last year that the project could cost each household £10.50 per year on their energy bills using the regulated asset base model.
Times 8th July 2021 read more »
Sizewell C | Funding model behind Tideway to be used on £20bn nuclear plant. The government has announced plans to fund the Sizewell C nuclear plant via the Regulated Asset Base (RAB) funding model.
New Civil Engineer 7th July 2021 read more »