The government will need to “closely” monitor the finances of the Sizewell C nuclear power station during its construction due to the risky nature of the project, and consumers might not see the financial benefits of the project until 2060.
A report from the National Audit Office (NAO) outlined the potential risks of the project’s funding model, which sees the government provide the majority of the money needed for its construction, while only taking a minority share in the company.
Last July, a deal was reached with private investors to help spread the cost of the £38bn project due to its massive scale. In total, the taxpayer will take an initial 44.9% stake and EDF 12.5%, while the new shareholders include investment group La Caisse with 20%, Centrica with 15% and Amber Infrastructure with an “initial” 7.6%.
The NAO has calculated that under the current regime, the investors will see financial returns that cost consumers over £4bn in total. It said that while sharing risk between the...