𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The costs of building Sizewell C nuclear power station could cost households up to £19 a year on top of their electricity bills by the time it opens, according to the public spending watchdog.

Last year, the Government struck a deal with investors to push ahead with the power plant’s construction, to the cost of around £38 billion.

Construction on the project is expected to be completed by summer 2039 and will power the equivalent of six million UK homes for 60 years.

A report from the National Audit Office (NAO) published on Wednesday showed that the cost of Sizewell C is expected to increase electricity prices for the typical household by £4 in 2025-26.

It found that this would then rise as high as between £17 and £19 by the time it opens.

The NAO also highlighted the “novel finance structure” used by the Department for Energy Security and Net Zero (DESNZ) with support from industry investors who help support the project.

The Government is the biggest shareholder in the project with a 44.9% stake, but other investors include Canadian investment fund La Caisse with 20%, British Gas owner Centrica with 15%, EDF with 12.5% and Amber Infrastructure with an initial 7.6%.

The report said that financial returns to investors could cost consumers between £4 billion and £4.5 billion unless they also help to reduce costs and the timeframe of the project.

But it added that the project could provide up to £18 billion of net benefits for consumers, according to Government modelling.

A DESNZ spokeswoman said: “Building new nuclear is an investment this country must make, because it is the only way to get our country off the rollercoaster of volatile global gas markets.

“As the NAO confirms, this is a good deal for consumers and taxpayers – leading to cheaper power for families, saving £2 billion a year across the energy system once built, and limiting the impact on a typical household bill to an average of around £1 per month during construction.”

Gareth Davies, head of the NAO, said: “Sizewell C forms a significant part of the Government’s plan for a secure and affordable clean energy supply.

“There has been a concerted attempt to learn from the problems of previous nuclear power construction projects and other large infrastructure schemes.

“This has resulted in a novel financing structure and DESNZ will need to monitor the risks to taxpayers and billpayers closely.”