nuclear-news

UK Election! And no Final Investment Decision made on Sizewell nuclear project

 https://mailchi.mp/stopsizewellc/election?e=c3c4307b44 24 May 24

Last night’s announcement of a snap election has convinced us that the government’s commitment to reach a Final Investment Decision (FID) on Sizewell C within the current parliament is essentially impossible to fulfil. We explain why below, and why Sizewell C’s future is dependent on the election outcome.

We are already making plans to set up actions that will enable you to contact parliamentary candidates about Sizewell C – certainly in Suffolk but hopefully countrywide – and planning an energy hustings in East Suffolk with our allies. Meanwhile we have sent the following comment and briefing to the media.

“The impossibility of a Final Investment Decision on Sizewell C being made before the election lets the Conservatives off the hook for signing away another HS2. It also presents a likely Labour government, looking to drive down bills and reach net zero by 2030, an opportunity to focus on more cost effective renewable projects. We are going to do everything in our power to ensure that this election signals the death knell for slow, expensive, risky Sizewell C.”

• Stop Sizewell C understands that the capital raise is still ongoing, and final bids have yet to be submitted, reportedly due by the end of June. A likely change in government may increase the risks perceived by investors and influence or even deter bids. The capital raise will be subject to a Value for Money (VfM) assessment. If, as reported, investors are seeking high returns, the VfM – and therefore the capital raise – is likely to fail.
• In this event, Ministers would have to decide whether to take a FID with the taxpayer as Sizewell C’s majority stakeholder. An additional VfM assessment will be required as well as multiple internal procedural steps and approvals.
• 
  While Labour’s stated position is in favour of Sizewell C, the implications of having to make a FID requiring billions of pounds of taxpayers’ money and which would additionally push much of the risk onto household bills via use of the RAB funding model, in addition to the impossibility of Sizewell C contributing to the goal of net zero by 2030, may give pause. Rising costs and inflation make the current government’s estimate of a Sizewell C RAB costing consumers on average £1 month improbable.
  A new government would be expected to conduct a Spending Review ahead of an autumn budget, which seems likely to also lead to a pause before any decision about a Sizewell C FID was made. 
• 
  Sizewell C Chair Rob Holden acknowledged the risk associated with a change in government telling the The Times recently “Clearly there has to be a risk there. There is with any big decision on this.” In the same interview Rob Holden also highlighted that further widening of the gap between Hinkley Point C and Sizewell C would reduce any replication “benefits”.
  Even in the very unlikely event a FID could be fast-tracked, pre-election guidance states that Ministers should “observe discretion” in making big announcements. This must be especially pertinent if a large commitment of taxpayers’ money was necessary for a Sizewell C FID. Having sucked up £2.5bn in taxpayers’ money already, which we understand is all committed, it’s possible yet more funds will be allocated to keep the project going over this period of uncertainty.

May 26, 2024 - Posted by Christina Macpherson | politics, UK