Households have to face an increase in energy bills to pay for the new nuclear power plant: CityAM

It is reported that households’ energy bills will soon be increased to pay for the construction of new nuclear power plants in the UK.

Ministers are in the process of drafting legislation that will allow the construction of the new £ 20 billion Sizewell C plant in Suffolk through the use of a regulated asset base (RAB) funding program, the FT reported.

In essence, the RAB model, which is already used in the UK for large infrastructure projects such as Thames Tideway, would allow builders to charge the energy of the facility to subsequent users during the construction phase.

The logic goes by using such a surcharge, which would be set at an agreed level, would make it easier for the project to attract more investors to the project.

The government launched a consultation on the funding method back in 2019. Today the Ministry of Economy, Energy and Industrial Strategy (BEIS) announced that it is still evaluating the RAB model.

The planned new facility in Sizewell will have 3.2 gigawatts of power generation capacity, enough to supply more than 6 million households for six decades.

The report comes amid growing concerns about the future of the UK nuclear fleet, with all but one of the existing reactors slated to close by 2030.

Only one new facility is under construction so far, Hinkley Point C in Somerset, leading to MPs calling for the government to commit to 10 gigawatts of new nuclear power by 2030.

This is in line with the recommendations of the government’s climate adviser, the Committee on Climate Change (CCC).

A BEIS spokesperson said: “New nuclear energy will play a vital role in this government’s plans to achieve a safe, low-carbon, affordable energy future.

“As noted in our recent consultation, the government continues to examine a regulated asset financing model (RAB) with nuclear project developers and believes it remains a credible option with the potential to secure private investment and reduce costs for consumers Long-term energy costs.

“We will continue to evaluate the RAB, along with other delivery models, and have always been clear that every new nuclear project must offer consumers and taxpayers good value for money.”