Sizewell C is now the costliest nuclear reactor in the world

A Sad Day for Suffolk 

You are no doubt aware of the appalling news that the government has made a final investment decision (FID) on Sizewell C and revealed the latest estimate for the cost of building the plant as £38bn (2024 prices). Even as early as the following day, the Government has admitted that Sizewell C could cost an extra £10bn, taking the costs nearer to £50bn, just staggering, and will make Sizewell C easily the most expensive nuclear power station in the world.

The government has now confirmed what we have all known for years – that the cost of building Sizewell C will be far higher than the £20bn they and Sizewell C Ltd have been claiming for the last 5 years - so, it is not just the additional sea defences that EDF and Sizewell C Ltd have chosen to keep secret! One wonders what else they are keeping hidden.

The Sizewell C FID establishes the project’s ownership as: UK Government 44.9%; Canadian pension fund, La Caisse 20%; Centrica 15%; EDF 12.5% and Amber Infrastructure 7.6%.

To get this risky project over the line, this government has chosen to burden the UK public with paying the Sizewell C construction tax (Regulated Asset Base funding model) – expected to be added to our electricity bills over the next few weeks – and take on the risk of cost and time overruns. This decision prioritises big business and props up French state-owned EDF and its ailing nuclear industry, rather than more deserving causes in the UK.

An example of the high returns that investors are expected to make at our expense was reported in the Financial Times: “Centrica said it still expected to make 10-12% returns even if the project comes in at £47bn. If costs climb above £47bn, investors have no obligation to inject more equity.”

Many supporting documents have been published by the government, so we are anticipating that further details regarding the substance of the government’s arguments in favour of Sizewell C will be revealed as we scrutinise these reports over the coming days. The value for money assessment, para 14, includes justification for Sizewell C, stating, “The Net Present Social Value (NPSV) has been calculated by comparing the cost of the electricity system with and without SZC. It includes costs that have already been incurred by the project…” In TASC’s opinion, this sort of argument is straight out of the HS2 playbook – the reckless decision to throw billions of taxpayer funds at Sizewell C before a FID has been used to justify continuing with the project.

Now that there has been a formal financial commitment to Sizewell C, our legal claim must be heard by the court, especially as the full environmental impact of the project has not been assessed, nor have alternatives, such as raising the platform height (negating the need for additional flood defences), been considered and given public scrutiny. Future generations are relying on us to get this right.

TASC are still waiting to hear from the High Court as to whether we have been granted permission for a judicial review hearing – TASC submitted the formal application to the court two months ago and then one month later filed our response to the ‘Grounds of Resistance’ that had been submitted by the Secretary of State for DESNZ and Sizewell C Ltd.

Leigh Day’s press release regarding TASC’s legal challenge about Sizewell C’s secret sea defences.

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TASC’s new legal challenge against Sizewell C’s secret flood defences

TASC issued the following press statement following the FID announcement:- Following Ed Miliband’s statement that a final investment decision has been made regarding the Sizewell C nuclear plant, Together Against Sizewell C (TASC) Chair, Jenny Kirtley, said,

“This decision is a financial and environmental disaster for the UK and a betrayal of future generations. We are in a climate crisis that needs immediate action, yet this government has chosen to squander billions of public funds on a project that will not be operational until the late 2030s and has already seen a staggering 90% uplift in cost over the last 5 years. At nearly double the original £20bn price tag, a figure still being touted by joint managing director Julia Pyke until recently, how can anyone believe that £38bn Sizewell C will provide ‘value for money’ for consumers and taxpayers? The scale of potential exposure of public funds to the Sizewell C project is revealed as a staggering £54.589 billion in the government’s FID subsidy scheme (see note 1).

“So much for claims made by EDF and government that there would be huge cost savings from ‘lessons learned’ from the Hinkley Point C build. In TASC’s view, the cost of this risky project can only increase as there are still many unresolved issues, including the recently revealed hidden sea defences which were not included by EDF in the 2020 DCO planning application even though EDF knew they would be needed in 2017 (see note 2). Future generations will have the responsibility to protect the Sizewell C site until the late 2100s and are depending on us to get it right.”

Notes: 1. https://searchforuksubsidies.beis.gov.uk/scheme/?scheme=SC11357 2

TASC are extremely grateful for your continued support, it is much appreciated.