UK nuclear investors get 'high' returns for lower risk than consumers, who also foot the bill

Sizewell C, a £38.2 billion nuclear reactor project in Suffolk, is planned to provide investors high returns with limited exposure to risk, while consumers are expected to face an annual £19 increase in bills. A National Audit Office report says the estimated consumer impact relies on major assumptions about the likelihood of further cost increases. Construction began in April 2024, but the Department for Energy Security & Net Zero did not finalize the deal to complete the build with EDF until July 2025. The project uses a joint venture structure, with the government’s National Wealth Fund providing £36.6 billion and commercial lenders contributing £5 billion. Costs are expected to be managed by learning from delays and overruns at Hinkley Point C.

"The UK's £38.2 billion (c $51 billion) Sizewell C (SZC) nuclear reactor is set to offer investors high rewards for little exposure to risk, while the consumer will see a £19 ($25.50) annual hike to their bills, according to a public sector spending watchdog."

"A report from the National Audit Office on plans for building the second in a new generation of nuclear power plants - Sizewell C in Suffolk - finds that the current estimated impact on consumers "relies on some big assumptions" about chance of further cost increases."

"Gareth Davies, head of the NAO, said: "Sizewell C forms a significant part of the government's plan for a secure and affordable clean energy supply. There has been a concerted attempt to learn from the problems of previous nuclear power construction projects and other large infrastructure schemes. This has resulted in a novel financing structure and DESNZ will need to monitor the risks to taxpayers and billpayers closely.""

"Construction started in April 2024, although the Department for Energy Security & Net Zero (DESNZ) did not finalize its deal to complete the build with French energy firm EDF until July 2025. The government chose to create a joint venture company - Sizewell C Ltd - with DESNZ taking a minority stake and private investors, including EDF, taking the lion's share. The government's National Wealth Fund will provide £36.6 billion (c $49 billion) in finance, while £5 billion will come from commercial lenders."

Read at theregister