Sizewell C nuclear plant secures £38bn funding with consumer-backed model
The Sizewell C nuclear power plant has moved forward after a final investment decision in July 2021. Expected to cost £38 billion, the project will use a new funding model where consumers contribute during construction. Once completed, it could deliver net benefits of up to £18 billion for households across the UK. The plant will feature two EPR reactors, generating 3.2 GW of electricity—enough to power around six million homes for at least 60 years. Construction is set to finish by 2039, with costs running 22% lower than the current estimate for Hinkley Point C.
Consumers will begin paying towards the project from November 2025, with bills rising by around £4 in 2025-26. By the time the plant starts operating, the increase could reach £17-19 per year. The total consumer contribution during construction may hit £4 billion.
EDF will invest up to £1.1 billion during the build phase, holding a 12.5% stake in the project. Under the Regulated Asset Base (RAB) funding model, investors could see post-tax equity returns of up to 13%, provided construction stays on budget. The project aims to provide long-term energy security while reducing consumer costs over time. If completed as planned, Sizewell C will become a key part of the UK’s low-carbon electricity supply. The government and investors anticipate significant economic and environmental benefits once operational.
