Warning over Sizewell C impact on bills

Government claims that Sizewell C will lower electricity system costs compared with alternative ways of achieving net zero are “uncertain”, according to a report.

The National Audit Office said comparisons were difficult as it is hard to predict the future costs and likelihood of success of alternative technologies.

It also said the cost of the project was expected to increase electricity prices for the typical household by £4 in 2025-26, and could rise as high £19 per year by the time it opens.

Although Sizewell C uses a proven technology, the NAO warned still carries major delivery risks.

“No nuclear power station of its type has so far been built without delays or cost increases,” it pointed out.

Although the report said the sharing of risk with the taxpayer and consumer appears to have reduced the cost of financing the project, it said the rewards for investors “still appear high, given their limited exposure to project risk”.