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 - Shadow Minister (Foreign, Commonwealth and Development Office)
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: Ashley Dalton (Labour - West Lancashire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent estimate her Department has made of when the (a) Hinkley and (b) Sizewell nuclear power plant will be operational.
Answered by Andrew Bowie - Shadow Minister (Energy Security and Net Zero)
EDF is the lead investor at Hinkley Point C and they have provided a target date for commercial operations for Unit Reactor 1 of June 2027, with Unit Reactor 2 following a year later in June 2028. Both units have a risk of a delay of 15 months. We expect Sizewell C to be generating power from the mid-2030s, subject to ongoing project development and the timing of a Final Investment Decision.
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 - Shadow Minister (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: 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 - Shadow Minister (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 - Shadow Minister (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: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what steps they are taking to ensure that prospective investors in the proposed Sizewell C nuclear power plant undergo strict national security checks.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
The Government is clear that, whilst we welcome investment in sectors including civil nuclear, this can never be at the expense of national security.
As set out in the Written Ministerial Statement of 18th September, should any investor’s shareholding in the Sizewell C project reach the relevant statutory thresholds, the investor will be required to pass through the process set out in the National Security and Investment Act 2021, allowing scrutiny of any risks posed with respect to this legislation.
In addition, as a condition of the Secretary of State’s designation of Sizewell C Limited in accordance with section 2(1) of the Nuclear Energy (Financing) Act 2022, the Secretary of State must have the ability to take a special share in the company. The rights attached to the special share are subject to approval by the Secretary of State but will likely be limited to protecting national security interests with respect to the project and complementary to the provisions of the National Security and Investment Act 2021, alongside other, related matters.
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 - Shadow Minister (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: 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 - Shadow Minister (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.
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 - Shadow Minister (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: 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 many (a) outages and (b) other periods of unavailability of electricity generation there have been per reactor, in days, at Heysham 2 power station in each year since 2010.
Answered by Andrew Bowie - Shadow Minister (Energy Security and Net Zero)
.
Nuclear power continues to be an important and proven source of reliable, clean energy, and as a result of this strong baseload provision, we have been able to move faster on a number of our key net zero objectives.
A proportion of the nuclear generating capacity is likely to be unavailable at any given point due to routine inspections, maintenance, energy systems management and technical issues. A certain level of outage is to be expected and demonstrative of a very well regulated and safe technology.
In 2021, nuclear power stations generated 46 TWh of electricity which was 15% of the electricity generated in the UK. The UK’s Advanced Gas Cooled Reactor Fleet is ageing and has performed beyond original expectations providing extra years of generation.
In addition to the AGR fleet, Sizewell B will continue operating until at least 2035 and we have set out our ambition for a new generation of nuclear power stations, providing up to 24GW of electricity by 2050. The new reactor designs are very efficient. This includes new large-scale nuclear power stations like Hinkley Point C which alone will provide 3.2GW for around 60 years, and the next generation of small and advanced reactors are expected to be more efficient.
2010 – 2023 (June): Annual number of outages and non-operational days at UK nuclear power stations
| Dungeness B R21 | Dungeness B R22 | Hartlepool R1 | Hartlepool R2 | Heysham 1 R1 | Heysham 1 R2 | Heysham 2 R7 | Heysham 2 R8 | ||||||||
| Outages | Days non operational | Outages | Days non operational | Outages | Days non operational | Outages | Days non operational | Outages | Days non operational | Outages | Days non operational | Outages | Days non operational | Outages | Days non operational |
2010 | 0 | 230 | 4 | 101 | 3 | 49 | 3 | 86 | 2 | 152 | 3 | 119 | 1 | 5 | 1 | 251 |
2011 | 4 | 260 | 3 | 249 | 6 | 129 | 2 | 50 | 2 | 22 | 4 | 24 | 2 | 82 | 3 | 32 |
2012 | 5 | 172 | 2 | 181 | 3 | 47 | 2 | 37 | 4 | 71 | 5 | 133 | 4 | 63 | 0 | 0 |
2013 | 5 | 102 | 8 | 182 | 4 | 48 | 4 | 133 | 2 | 141 | 7 | 50 | 1 | 28 | 2 | 74 |
2014 | 9 | 179 | 6 | 106 | 3 | 122 | 4 | 144 | 3 | 246 | 3 | 138 | 0 | 0 | 1 | 1 |
2015 | 4 | 44 | 3 | 129 | 2 | 79 | 4 | 79 | 3 | 77 | 2 | 136 | 2 | 70 | 0 | 0 |
2016 | 4 | 41 | 7 | 57 | 5 | 132 | 3 | 79 | 2 | 46 | 3 | 47 | 0 | 0 | 1 | 65 |
2017 | 6 | 153 | 5 | 92 | 2 | 26 | 4 | 29 | 2 | 98 | 3 | 75 | 3 | 9 | 0 | 0 |
2018 | 4 | 127 | 3 | 140 | 2 | 109 | 3 | 29 | 3 | 31 | 1 | 71 | 3 | 89 | 1 | 4 |
2019 | 0 | 365 | 0 | 365 | 6 | 41 | 3 | 117 | 2 | 39 | 5 | 86 | 0 | 0 | 2 | 5 |
2020 | 0 | 366 | 0 | 366 | 2 | 29 | 3 | 62 | 3 | 130 | 3 | 71 | 1 | 9 | 2 | 82 |
2021 | 0 | 365 | 0 | 365 | 2 | 114 | 3 | 135 | 4 | 129 | 6 | 95 | 3 | 193 | 5 | 65 |
2022 | N/A | N/A | N/A | N/A | 2 | 82 | 2 | 53 | 2 | 57 | 2 | 122 | 5 | 109 | 3 | 63 |
2023 | N/A | N/A | N/A | N/A | 2 | 20 | 2 | 20 | 1 | 14 | 1 | 24 | 2 | 22 | 2 | 96 |
| Hinkley Point B R3 | Hinkley Point B R4 | Hunterston B R3 | Hunterston B R4 | Torness R1 | Torness R2 | Sizewell B R1 | |||||||
| Outages | Days non operational | Outages | Days non operational | Outages | Days non operational | Outages | Days non operational | Outages | Days non operational | Outages | Days non operational | Outages | Days non operational |
2010 | 2 | 54 | 4 | 44 | 2 | 14 | 2 | 15 | 1 | 36 | 5 | 143 | 1 | 196 |
2011 | 2 | 36 | 3 | 90 | 3 | 42 | 4 | 19 | 2 | 64 | 4 | 13 | 2 | 53 |
2012 | 4 | 86 | 3 | 20 | 1 | 60 | 2 | 88 | 0 | 0 | 0 | 0 | 4 | 83 |
2013 | 1 | 9 | 1 | 23 | 0 | 0 | 4 | 17 | 1 | 48 | 1 | 12 | 1 | 47 |
2014 | 1 | 33 | 0 | 0 | 3 | 25 | 3 | 18 | 3 | 109 | 3 | 79 | 1 | 46 |
2015 | 1 | 6 | 1 | 85 | 3 | 69 | 2 | 86 | 1 | 4 | 0 | 0 | 0 | 0 |
2016 | 4 | 77 | 1 | 6 | 3 | 27 | 1 | 1 | 1 | 16 | 1 | 4 | 1 | 62 |
2017 | 3 | 28 | 3 | 51 | 2 | 27 | 1 | 2 | 1 | 65 | 1 | 63 | 1 | 58 |
2018 | 2 | 18 | 1 | 64 | 3 | 301 | 5 | 86 | 1 | 90 | 2 | 4 | 0 | 30 |
2019 | 2 | 96 | 1 | 3 | 0 | 365 | 0 | 0 | 1 | 257 | 0 | 0 | 1 | 65 |
2020 | 2 | 248 | 1 | 314 | 0 | 243 | 1 | 6 | 0 | 271 | 0 | 0 | 1 | 2 |
2021 | 2 | 147 | 1 | 130 | 2 | 64 | 4 | 72 | 2 | 71 | 4 | 142 | 1 | 127 |
2022 | 3 | 19 | 1 | 11 | N/A | N/A | 0 | 0 | 4 | 81 | 3 | 115 | 1 | 4 |
2023 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 2 | 40 | 3 | 32 | 1 | 91 |
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Notes on Table