Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, with reference to the press release dated 15 April 2024 issued by the company Framatome, entitled Framatome has signed contracts worth multi-billion euros for Sizewell C in the UK, what the monetary value is of the contracts referred to; and for what reason the contracts were signed in advance of a final investment decision for the construction of a new nuclear power station at Sizewell.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Agreeing contracts with major suppliers like Framatome means that the Sizewell C project can agree pricing and confirm manufacturing slots within the supply chain. This will help maintain the project’s schedule and manage overall costs, supporting Sizewell C’s value for money.
The value of these contracts is commercially sensitive, and the timing of payments under these contracts will be subject to Notices to Proceed that will be issued by Sizewell C Limited.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if she will make it her policy to sign affordable power purchase agreements with Sizewell C nuclear power station.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government – with its co-shareholder, EDF – is developing the Sizewell C project on the basis of using the Regulated Asset Base (RAB) model for nuclear. The Sizewell C Company’s trading methods under the RAB model would be regulated by Ofgem throughout the duration of the project’s licence. Ofgem’s principal objective is to protect the interests of all existing and future electricity consumers.
New nuclear projects are crucial to help deliver a clean and secure electricity system that is also lower-cost to consumers. Government analysis has shown that Sizewell C is likely to result in value for money, by reducing costs to consumers in a low-carbon electricity system and improving the security of supply.
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.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 19 September 2023 to Question 199094 on Sizewell C Power Station: Construction, what the expected value of the Government’s shareholding in Sizewell C is in the 2023-24 financial year.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government became an equal-shareholder in the Sizewell C project with EDF in November 2022, following an historic investment of c.£700m. This Summer the Government has invested a further £511m in the project.
The value of the Government’s shareholding in the financial year 2023-24 is subject to the outcome of the equity raise process started on September 11th 2023, as well as to the project’s wider development. Both of these processes are ongoing and commercially sensitive.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 7 September 2023 to Question 195847 on Sizewell C Power Station: Construction, if she will issue a breakdown of all Sizewell C projects the Government has provided public investment for in financial year 2021-22; and what the Government's planned expenditure on Sizewell C in financial year 2022-2023 is.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
For financial year 2021-22, an investment of £100m by EDF in the Sizewell C project in January 2022 was provided by the Government through the Combined Option Agreement. In the same financial year, the Government provided a further £0.24m of innovation funding in 2021/22 to Sizewell C, together with partner organisations, through Phase 1 of the Direct Air Capture and other Greenhouse Gas Removal technologies competition, part of the Government’s Net Zero Innovation Portfolio.
In the financial year 2022-23, the Government’s planned expenditure on developing the Sizewell C project is £860m, with a further £0.5m provided as part of Phase 2 of the Direct Air Capture and other Greenhouse Gas Removal technologies competition.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 7 September 2023 to Question 195847 on Sizewell C Power Station: Construction, what the expected value was of the Government’s shareholding in Sizewell C in the 2022-23 financial year.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The expected value of the Government’s shareholding in Sizewell C in financial year 2022-2023 (as at 31 March 2023) was a total of £363mn, made up of £11.5mn of ordinary shares and £351.8mn of shareholder loans.
Asked by: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how much funding the Government has provided for the development of Sizewell C nuclear power station, broken down by (a) funding stream and (b) government department.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
As a shareholder in Sizewell C, the Government announced an investment of £679 million in November 2022 and made available further amounts of £170 million and £341 million this year to continue driving forward the project’s development, towards the aim of making a final investment decision on a large-scale nuclear project this Parliament. The Government’s investment in Sizewell C has been funded from the Department's capital budgets agreed at the Autumn Statement 2022. This investment came on top of £100 million invested by EDF in Sizewell C in January 2022 which was provided by the Government through the Combined Option Agreement, this used departmental budgets in the financial year 2021/2022.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if she will publish (a) all sources of Government funding used for the development of Sizewell C nuclear power station, (b) the total expenditure from each funding stream and (c) a breakdown of (i) current and (ii) projected expenditure for each financial year since the start of the project; and if she will make a statement.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government’s investment in Sizewell C has been funded from the Department's capital budgets agreed at the Autumn Statement 2022. As a shareholder in Sizewell C, the Government announced an investment of £679 million in November 2022 and made available further amounts of £170 million and £341 million this year to continue driving forward the project’s development, towards the aim of making a final investment decision on a large-scale nuclear project this Parliament. This investment came on top of £100 million invested by EDF in Sizewell C in January 2022 which was provided by the Government through the Combined Option Agreement, this used departmental budgets in the financial year 2021/2022. Further details are commercially sensitive, and it would not be appropriate to disclose more at this time.
Mentions:
1: Damian Collins (Con - Folkestone and Hythe) or Sizewell C then there is no future for them at all.” - Speech Link
2: Alan Brown (SNP - Kilmarnock and Loudoun) In other words, I would argue that Sizewell C is a daft location for a new nuclear power station. - Speech Link
3: Alan Whitehead (Lab - Southampton, Test) station generating in the late 2030s onwards.So far the Government have put £2.5 billion into Sizewell - Speech Link
Mentions:
1: Geoffrey Clifton-Brown (Con - The Cotswolds) station from Oldbury or Berkeley. - Speech Link
2: Virginia Crosbie (Con - Ynys Môn) FID on Sizewell C is vital, and I hope that that investment can be achieved as quickly and smoothly as - Speech Link
3: Andrew Bowie (Con - West Aberdeenshire and Kincardine) rapid progress on Sizewell C. - Speech Link