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geemong
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Government's progress on funding criticised

Government's progress on funding criticised


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Anti-nuclear power campaigners have criticised the government for not providing more financial information in its announcement about how Sizewell C could be funded.

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The government said applying a new funding model to the firm behind the plant in Suffolk was "significant".

It said private investors could be attracted by getting a return up front.

Stop Sizewell C said redacted figures meant it was impossible to know if it represented value for money.

The Department for Business, Energy and Industrial Strategy (BEIS) has outlined its draft reasons for designating Sizewell C's operating company, NNB Generation Company (SZC) Limited, as able to receive funding through the new Regulated Asset Base (RAB) model.

The French energy company EDF and the UK government have said they would take 20% stakes in Sizewell C.

It has been estimated Sizewell C would cost £20bn to construct.

RAB would allow investors to get a return on their money during the build, rather than waiting until electricity was generated, the government said.

The government said "over the 60-year lifetime of a generic new large-scale nuclear power station, our funding model could reduce the project cost by more than £30bn".

Energy minister Kwasi Kwarteng said the RAB designation represented "significant progress towards implementing a new funding model which will give nuclear projects the financial support they need and attract private investment".

"Private investors receive greater certainty through a lower and more reliable rate of return in the early stages of a project, lowering the cost of financing it, and ultimately helping reduce consumer electricity bills," he said.

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