Sizewell - funding
Posted: 14th November 2025
Taxpayers will see “no return whatsoever” on the £6.4bn that the
government is committing in equity to Sizewell C, according to an energy
policy expert. The agreements on private investment to build the new
nuclear power station have been reached through the government agreeing to
use the Regulated Asset Base (RAB) model. RAB works by having consumers pay
a surcharge on their bills during the construction phase, which helps lower
the cost of capital and reduces the financial risk for investors. This
surcharge will be added to bills through the construction and for the first
three years of operation. It goes towards paying back the private entities
for their investment and, according to the government, will mean lower
bills for consumers over the long term. Ofgem, as the regulator, sets the
allowed revenue to ensure costs are incurred efficiently and consumers get
value for money. However, University of Greenwich emeritus professor of
energy policy Steve Thomas is scptical about this, given that the current
official estimate of £38bn to build Sizewell C is at the lower end of the
range of likely costs and this is in 2024 prices, with inflation pushing it
up all the time.
New Civil Engineer 10th Nov 2025
https://www.newcivilengineer.com/latest/sizewell-c-consumers-like-to-see-no-return-on-6-4bn-public-funds-put-in-as-equity-10-11-2025/