Asked by: Lord Marlesford (Conservative - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what public funds they have committed for the construction by EDF of nuclear power stations at Hinkley Point and Sizewell, respectively; and from what other sources, including a levy on consumers for sales of electricity, funding has been offered for each.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
In 2016, the Government negotiated the Contract for Difference for Hinkley Point C which fixes the cost of electricity provided by Hinkley Point C. There is no cost to the consumer until Hinkley Point C starts to produce electricity. The strike price is £92.50 per Megawatt-hour. The household bill impact depends on a variety of factors such as the future electricity generation mix, wholesale gas price, wholesale electricity price and decarbonisation pathway.
The Government is a co-shareholder in the Sizewell C project company with EDF. The Government has committed to invest c.£1.2bn in Sizewell C’s development. The project has been designated to benefit from the new Regulated Asset Base (RAB) model for nuclear, which will entail a levy on all licensed electricity suppliers in Great Britain; suppliers may choose to pass those costs to their consumers. The RAB model will include incentives on cost and schedule control, with the exact details finalised at the project’s Final Investment Decision.
The capital costs for Sizewell C are commercially sensitive, and subject to ongoing development and a live equity raise. We are therefore unable to discuss this further at this time.
Asked by: Lord Marlesford (Conservative - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the projected cost of £20 billion for the construction of the Sizewell C nuclear power station; and what is the likelihood of that figure being exceeded.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
In 2016, the Government negotiated the Contract for Difference for Hinkley Point C which fixes the cost of electricity provided by Hinkley Point C. There is no cost to the consumer until Hinkley Point C starts to produce electricity. The strike price is £92.50 per Megawatt-hour. The household bill impact depends on a variety of factors such as the future electricity generation mix, wholesale gas price, wholesale electricity price and decarbonisation pathway.
The Government is a co-shareholder in the Sizewell C project company with EDF. The Government has committed to invest c.£1.2bn in Sizewell C’s development. The project has been designated to benefit from the new Regulated Asset Base (RAB) model for nuclear, which will entail a levy on all licensed electricity suppliers in Great Britain; suppliers may choose to pass those costs to their consumers. The RAB model will include incentives on cost and schedule control, with the exact details finalised at the project’s Final Investment Decision.
The capital costs for Sizewell C are commercially sensitive, and subject to ongoing development and a live equity raise. We are therefore unable to discuss this further at this time.