London Daily

Focus on the big picture.
Monday, Mar 16, 2026

Plan for UK nuclear financing model moves upfront cost to energy bills

Plan for UK nuclear financing model moves upfront cost to energy bills

Legislation paves way for firms building nuclear plants to charge households long before completion
The government plans to resuscitate the UK’s nuclear energy ambitions by creating a financing model that could pile part of the upfront cost of the £20bn Sizewell C power plant on to householders’ energy bills before it starts generating electricity.

The energy secretary, Kwasi Kwarteng, set out legislation on Tuesday that would share the early construction costs with consumers, with the aim of reducing the UK’s reliance on overseas funding for nuclear projects by making them more attractive to domestic investors.

The long-awaited legislation could also pave the way for the government to take a direct stake in the Sizewell C nuclear plant by using tens of millions of pounds of public money during its risky development phase – replacing the China General Nuclear Power Group (CGN), which has a 20% share of the project.

Kwarteng said the existing financing scheme, which was used to back the Hinkley Point C nuclear scheme in Somerset, had led to “too many overseas nuclear developers walking away from projects, setting Britain back years”.

The legal backing for a new financing model is expected to help clear the way for the energy firm EDF to build Sizewell C in Suffolk after years of wrangling over how to fund the huge upfront cost of constructing a nuclear plant.

Under the new financing framework, known as a regulated asset base (RAB) model, EDF would start earning money – collected from energy bills – long before the reactor begins generating electricity.

The government said each household would not have to pay more than a few pounds a year extra on its bills to support the project during construction, but Sizewell C could save households more than £30bn over the facility’s lifetime.

The plant, which is still going through the planning process, could eventually power 6m homes, but has been plagued by opposition from local campaigners, concerns about costs and the involvement of state-owned CGN.

CGN is a minority partner in EDF’s Hinkley Point scheme, and is interested in building its own reactor at Bradwell-on-Sea in Essex. However, its involvement in the nuclear industry has faced growing worries over national security. The US has urged the UK to cut the company from its nuclear programme.

Kwarteng said: “We urgently need a new approach to attract British funds and other private investors to back new large-scale nuclear power stations.”

The government’s nuclear ambitions have foundered in recent years, with companies including the South Korea power utility company Kepco and Japan’s Hitachi and Toshiba abandoning plans to build in the UK.

Greg Hands, the minister for energy and clean growth, said the legislation would help the UK to build “the new nuclear power stations we need to ensure a resilient, low-carbon electricity system for future generations.

“This finance model will also support the UK’s thriving civil nuclear industry, which currently employs 60,000 in high-skilled jobs, and help create thousands more as we level up opportunities across the whole country.”
Newsletter

Related Articles

0:00
0:00
Close
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
London Private Club Founder Plans Exclusive Palm Beach Venue Near Trump’s Mar-a-Lago
Ed Davey Urges Britain to Build Fully Independent Nuclear Missile Capability
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
US Treasury Links British Polo Patrons to Alleged Venezuelan Oil Proceeds Laundering Scheme
Hundreds Gather in London Despite Ban on Annual Pro-Palestinian March
Two Dead and Multiple Students Seriously Ill After Invasive Meningitis Outbreak at UK University
UK Considers Deploying Ships and Mine-Hunting Drones to Reopen Strait of Hormuz
Starmer and Trump Discuss Urgent Need to Reopen Strait of Hormuz Amid Escalating Iran Conflict
Prince Harry and Meghan Markle’s Planned Australia Visit Draws Mixed Reaction From Local Communities
Trump Calls on France and UK to Help Safeguard Strait of Hormuz Shipping Route
Boris Johnson Labels Bitcoin a ‘Ponzi Scheme’, Sparking Debate in Crypto World
UK Considers Targeted Aid for Vulnerable Households as Energy Costs Rise
Stellantis Urges Immediate Review of UK Electric Vehicle Sales Targets
Home Office Reverses Course to Allow Some Dual Nationals to Enter UK Using EU Passports
Reform UK Proposes Replacing Top Civil Servants With Officials Aligned to Government Agenda
Netflix Adds Critically Acclaimed ‘Best Film of 2025’ With Perfect Rotten Tomatoes Score
‘The Sums Don’t Add Up’: UK Farmers Hit by Soaring Costs as Iran War Disrupts Global Supplies
Confidential UK Biobank Health Records Found Online After Researchers Accidentally Expose Data
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
×