New Sizewell nuclear power station could raise energy bills by £6
The construction of a new nuclear power station at Sizewell in Suffolk could raise energy bills by a few pounds every year.
Under the proposed financing plan, users would pay up front, with the surcharge likely to be an additional £6 on the average energy bill, and the developers would borrow against this guaranteed income.
The Department for Business, Energy and Industrial Strategy, alongside the Treasury, will shortly publish a consultation document on the new scheme.
Supporters of the plan say that it will bring the cost of nuclear power closer to current market rates.
Hinkley Point, which is currently under construction, has attracted criticism for the price of the power it will eventually generate.
The Treasury’s deal with EDF means the UK will pay £92.50 per megawatt-hour, approximately double the current market rate.
EDF have argued that the new Sizewell station will cost less than Hinkley Point, decreasing from £20 billion to £16 billion.
The proposed financing plan would also, according to analysts, reduce the comparative cost from 9 per cent for Hinkley Point to 4-5 per cent. This would lead to a lower cost for the power it would generate.
The plan, however, has been criticised for shifting the risk onto consumers. These critics have argued that if construction costs exceed predictions, the taxpayer will have to pay for the disparity.