Sizewell C

Sizewell C’s £38bn nuclear project, approved by Ed Miliband, strengthens UK energy security with stable baseload power for 6m homes, reducing reliance on volatile renewables and fossil fuels, as seen in recent Spain-Portugal outages. The UK Government holds a 44.9% stake. Under the Regulated Asset Base model, investors may earn 6-8% annually, potentially £66-174m/year each. Taxpayers fund £14.2bn and face £1/month bill hikes, risking overruns to £50-60bn, reminiscent of HS2. Benefits include 10,000 jobs and £2bn in system savings, but taxpayers should be cautious of escalating costs.

Sizewell C is the definition of a government mega project, but one with few opponents. The cost of energy is only getting higher and war in Ukraine proves the need for energy security; the more we produce on our own shores the better. Dealing with nuclear matierial is still a problem, but compared to the carbon emmissions created by coal and gas, it is a genuine green alternative. This should see lower bills for customers, but only once in production and that may take decades.

Sizewell C has the potential to offer real value for taxpayers, but only if lessons from Hinkley Point C are properly learned and applied. If the project stays on budget and avoids the kind of overruns we’ve seen with HS2, the public could benefit through long-term energy security and a return on investment. But with a 44.9% government stake, we’re also on the hook if it goes wrong.