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UK residents face higher electricity bills, paying in advance, for the construction of new nuclear reactors

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

https://www.telegraph.co.uk/business/2021/07/07/consumers-face-higher-energy-bills-pay-new-nuclear-power/

July 10, 2021 - Posted by | business and costs, politics, UK

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