Sizewell C financing plans criticised by MPs

The funding plans for the Sizewell C nuclear plant are a very poor deal for energy consumers and taxpayers, according to MPs.

The Public Accounts Committee warned that the project’s novel delivery model means the public will provide most of the financing and bear most of the risk on the project which is set to cost between £40.5bn and £47.7bn.

If costs exceed projections the committee said private investors will only have to provide an additional £30m compared to an additional £9.8bn paid by consumers during construction and £12bn over the 60-year operating contract through higher energy bills.

Sir Geoffrey Clifton-Brown MP, Chair of the Public Accounts Committee, said: "The high level of risk borne by taxpayers and consumers for the construction of Sizewell C is extraordinary.

“Private investors look set for significant returns on their investments, while customers are likely to be saddled with higher energy bills. The government must focus on the successful delivery of this project, not just of a new nuclear power station, but of a commercially derisked nuclear sector for a taxpayer that should never be put in this position again.”

The government stressed investors in the project are incentivised to complete construction as cheaply and quickly as possible through the terms of the deal.