nuclear-news

Did Davey’s EDF Hinkley deal scupper tax payer?

Is EDF about to pocket extra cash due to strike price from decade ago?

 The Telegraph reports that Hinkley Point C will slap £1bn a year onto UK
energy bills the moment it starts generating. The cash will flow straight
from households to EDF under a subsidy deal locked in more than a decade
ago.

A second £1bn hit will land through the nuclear levy that bankrolls
Sizewell C in Suffolk. Campaigners are already calling the combination a
“nuclear tax on households” as ministers push ahead with the biggest
expansion of nuclear power in a generation.

Treasury and OBR documents
released after Rachel Reeves’s Budget spell out how the money will move.
CfD receipts are forecast to hit £4.6bn in 2030-31 with £1bn of that
handed to Hinkley C in its first year of operation. The root cause is the
2013 strike price agreed between EDF and Sir Ed Davey. It guarantees
£92.50/MWh for Hinkley’s output, now worth £133 with inflation and
expected to reach around £150 by the time the plant opens in 2030. If
wholesale prices hover near £80/MWh as they do today EDF can claim roughly£70/MWh from consumers and businesses to make up the difference.

 Energy Live News 1st Dec 2025. https://www.energylivenews.com/2025/12/01/did-daveys-edf-hinkley-deal-scupper-tax-payer/

December 4, 2025 - Posted by Christina Macpherson | business and costs, UK