Spending watchdog warns 38bn cost of Sizewell C nuclear plant is risky'

"The cost of the government’s 38bn nuclear plant in Suffolk is subject to significant uncertainty and may outweigh the benefits for UK households until at least 2064, according to the government’s spending watchdog. The National Audit Office (NAO) has warned that although the potential benefits of the Sizewell C nuclear plant are considerable, they remain uncertain. The risks, however, are immediate, substantial and borne by the public."

"The government claims the nuclear reactor, expected to generate the equivalent of enough low-carbon electricity to power 6m homes when it begins operations in the late 2030s, could save 2bn a year from the electricity system compared with using other low-carbon technologies. However, for households the overall savings could be outstripped by the cost of supporting its construction until almost halfway through its 60-year operational life. The project could take even longer to break even if there are cost overruns or delays, the NAO warned."

"Sizewell C is a project of exceptional scale, complexity and significance for taxpayers, said Sir Geoffrey Clifton-Brown, the chair of the public accounts committee, which oversees the work of the NAO. Experience from comparable nuclear projects in the UK and overseas highlights their vulnerability to delays and cost overruns. Sizewell C is being developed by French state nuclear company EDF as a successor project to the Hinkley Point C reactor in Somerset, the first nuclear plant to be built in the UK in a decade."

"It has invested 1.1bn to take a 12.5% stake in the project alongside the UK government, which has invested 14.2bn as the majority stakeholder. British Gas’s parent company, Centrica, owns 15% of Sizewell C while the Canadian pension fund La Caisse and the investment fund Amber Infrastructure own 20% and 7.6%, respectively. Nigel Cann, the chief executive of Sizewell C, said the cost on household bills were an investment in lower long-term electricity costs which will deliver value to cons"

The 38bn Sizewell C nuclear project in Suffolk faces significant cost and benefit uncertainty. The National Audit Office warns that potential low-carbon electricity benefits are considerable but not guaranteed, while risks are immediate, substantial, and paid by the public. The government expects the plant to generate enough low-carbon electricity for about 6m homes and to save around 2bn per year for the electricity system compared with other low-carbon options. However, overall household savings could be overtaken by the costs of supporting construction until close to the middle of the plant’s 60-year operating life. Break-even could be delayed further by cost overruns or schedule slippage, based on experience from similar nuclear projects.

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