Funding plans for Sizewell C station approved by House of Commons

21:19 10 January 2022

Plans for a new way to fund nuclear power stations – including Sizewell C on the Suffolk coast – cleared their final hurdle in the House of Commons.

Business Secretary Kwasi Kwarteng described the passage of the Nuclear Energy (Funding) Bill on Monday night as “the path to leadership and innovation”.

The bill creates a new framework for funding nuclear power plants, after investor concerns led to ongoing projects being stalled.

Business Secretary Kwasi Kwarteng described the passage of the bill as ‘the pathway to leadership and innovation’
– Credit: PA

This would allow pension funds and other institutional investors to provide liquidity to power plants through a regulated asset-based funding model.

Energy bill payers would contribute to the cost of new power stations during construction through their bills, in a bid to give investors greater certainty after projects such as Sizewell C faced delays due to concerns about the financial risks of construction.

However, Labor said bill payers could be exploited as a “cash cow” under the new scheme if power stations face delays during construction.

MPs voted 458 to 53 in favor of the bill at third reading, and it will now be considered in the House of Lords.

The government recently agreed to a six-week deadline for the final decision on the Sizewell C proposals, which is expected to cost around £20billion.

A final decision on the construction of the station is expected later this year.

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