RAB Model for Nuclear: Government Response to the consultation on a RAB model for new nuclear projects.

Posted: 16th December 2020

BEIS 14th Dec 2020

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/943762/Nuclear_RAB_Consultation_Government_Response-.pdf

Taxpayers in the frame for funding at Sizewell nuclear plant. Ministers
said yesterday that they would begin formal negotiations with EDF that
would explore the possibility of taxpayer funding for the plant’s
construction. They would also consider approving a “regulated asset
base” funding model under which households and businesses would start
paying for the project via their energy bills while it was still under
construction. Both models raise concerns that consumers could be on the
hook for cost overruns. At Hinkley, consumers are insulated from budget
blowouts under a different funding model in which EDF and CGN are paying
all the construction costs. Consumers will, however, pay a high fixed price
for the electricity it generates, under a contract widely criticised as too
expensive. Greenpeace said that Sizewell was “unnecessary and remains
expensive” and warned: “If discussions with the majority French
state-owned company ever progressed, the UK public will need to stump up
billions of pounds in advance.”

Times 15th Dec 2020

https://www.thetimes.co.uk/edition/business/taxpayers-in-the-frame-for-funding-at-sizewell-nuclear-plant-tqmjpp7j2