nuclear-news

Hinkley Point C nuclear power station will add £1bn a year to energy bills.

Electricity project will be UK’s most expensive source with consumers footing the cost.

Jonathan Leake, Energy Editor, 28 Nov 25

The troubled Hinkley Point C nuclear power station will add £1bn annually to UK energy bills as soon as it’s switched on, official figures show.

The money will be taken from consumers and handed to the French owner EDF to subsidise operations, making it one of the UK’s most expensive sources of electricity.

A further £1bn will be added to bills by a separate
nuclear levy, supporting construction of the Sizewell C nuclear power
station in Suffolk, also led by EDF. Campaigners branded it a “nuclear
tax on households”.

Details were revealed in documents released by the
Treasury and the Office for Budget Responsibility in the wake of Rachel
Reeves’s Budget. They describe how EDF will be entitled to claim the
money under the “Contracts for Difference” subsidy system as soon as
Hinkley C begins operations, probably in 2030.

The documents state: “In
2030-31, Contracts for Difference (CfDs) are expected to generate £4.6bn
in government receipts, including £1bn to fund subsidy payments to the
Hinkley Point C nuclear power plant for its first year of expected
generation.” The impact on bills is linked to a 2013 agreement reached
between EDF and Sir Ed Davey, the then energy secretary.

He guaranteed that
EDF could charge £92.50 per megawatt hour (MWh) of power once Hinkley
Point C came online. With inflation, this equates to £133 today and is
expected to reach about £150 in 2030. If the wholesale cost of electricity
remains at its current level of about £80/MWh, then EDF can claim an extra
£70 from consumers and businesses via CfDs.

From January, energy bills
will also be hit by an entirely separate levy designed to support the
construction of another nuclear power station at Sizewell in Suffolk. The
Regulated Asset Base levy will add £10 a year to power bills from 2026,
raising £700m, but will roughly double by 2030, when it will need to raise
£1.4bn a year for Sizewell.

 Telegraph 28th Nov 2025, https://www.telegraph.co.uk/business/2025/11/28/hinkley-point-c-nuclear-power-station-add-1bn-a-year-bills/

November 29, 2025 - Posted by Christina Macpherson | business and costs, UK