Sizewell C power to cost almost double today's prices.

Sizewell C power to cost almost double today’s prices. Nuclear plant is an

‘appalling waste of electricity consumers’ and taxpayers’ money’, experts
claim. Electricity generated by the Sizewell C nuclear power station will
cost roughly double the normal price of power, according to a new
Government report. Estimates suggest that the power Sizewell C produces
will cost £120 per megawatt hour (MWh) in today’s prices, compared with the
current wholesale price of about £60 to £70. The extra costs will be added
to energy bills. The disclosure was made in a review of the business case
for Sizewell C published by the Department for Energy Security and Net
Zero. It is understood to be the first time Sizewell C’s power output has
been costed. It refers to the so-called “strike price”, which is likely
to be awarded to the nuclear power station under the contracts for
difference system. This is where generators get a guaranteed minimum price
for electricity, whatever the market value. The cost is then covered by a
levy on consumer bills, meaning it effectively acts as an energy subsidy.
Nuclear supporters, including Ed Miliband, the Energy Secretary, have
argued that nuclear power is worth the extra money because it acts as a
secure energy source for decades – potentially a century in the case of
Sizewell C. However, critics have raised concerns that prices for nuclear
will continue to rise, arguing that early estimates for constructing power
stations are always significant underestimates. They have pointed to
Sizewell C’s predecessor, Hinkley Point C, where original costs of £18bn
have soared to £50bn – a figure announced last week – with start-up delayed
from 2026 to 2031. The Government report for Sizewell C said estimates
assumed no escalation in costs, which would be a first for UK nuclear
construction projects. The report also warned that consumers were likely to
be charged more than the £120 per MWh rate because the strike price was
calculated net of all the tax, business rates and other payments to the
Government. Prof Stephen Thomas, the editor-in-chief of Energy Policy, an
academic journal, said: “Sizewell is an appalling waste of electricity
consumers’ and taxpayers’ money. If you want to justify a premium price for
nuclear, you have to estimate the costs of achieving the same factors -
energy security and reliability. “Of course, nuclear power plants aren’t
always reliable and the most insecure power source is the one that isn’t
built yet. Without the assumptions behind these cost guesses [of £120 per
MWh], they are worthless and far from transparent.” Alison Downes, of
Stop Sizewell C, a local campaign group, said: “Hinkley’s cost has soared
to £50bn with completion dates slipping and five years still to go.
Sizewell C’s costs will rise higher still when it inevitably overruns its
£40bn construction budget.”

Telegraph 25th Feb 2026

https://www.telegraph.co.uk/business/2026/02/25/sizewell-c-power-to-cost-almost-double-todays-prices/