Households could be asked to pay a £6 a year levy to help foot the bill for a controversial new nuclear power station on the Suffolk coast. Energy giant EDF is set to put forward a new plan to help finance Sizewell C which would see UK energy customers make contributions to help reduce interest costs on the project. The plans, which would see every energy customer pay around £6 a year, could help reduce the overall price of the project to £16billion, rather than the £20bn set aside for Sizewell C’s sister site in Hinkley.
East Anglian Daily Times 11th June 2019 read more »
Analysts say the financing cost could be reduced from about 9% at Hinkley Point to 4-5% – meaning a much lower cost of power. Industry sources say the final price could be around £60 per megawatt-hour. Critics of the plan say it shifts risk onto consumers, and point out that the taxpayer will have to pick up the bill if the construction costs turns out to be much greater than predicted.
BBC 11th June 2019 read more »
EDF Energy has for the first time indicated how much UK households could pay under its proposal to fund the construction of the Sizewell C nuclear plant through a new financing model, arguing it will add just a few pounds a year to the average bill. Households could pay about £6 a year under a proposal to fund the project, using a model where consumers pay upfront before the plant is built to reduce overall costs. The figure, while not finalised, is the clearest sign yet of what EDF plans to pitch to ministers as it tries to win backing for the project in Suffolk, after plans for a number of new UK nuclear projects collapsed or faced sharp criticism for their costs. To reduce costs at Sizewell C, the company has been looking at using a model known as a Regulated Asset Base or RAB, which has been used by utilities and airports to fund construction of major infrastructure projects. This involves placing a surcharge on customer bills before the project is completed, which companies say can sharply reduce financing costs and, in the long run, allows them to pass on the savings to consumers. But critics contend that it places more of the risk for the project’s construction on to households, while the cost of low-carbon rivals to nuclear such as offshore wind has been falling. The government has said it plans to publish an assessment of this model by the summer. EDF has argued that while the cost of offshore wind has fallen to a level where it is broadly competitive, it does not include the need for back-up power from other sources when weather conditions are not right
FT 11th June 2019 read more »
Daily Mirror 12th June 2019 read more »
Energy Live News 11th June 2019 read more »