The Government Actuary’s Department (GAD) is collaborating with the Department for Energy Security and Net Zero (DESNZ) on the advancement of Sizewell C.
The government holds the majority stake in the project, alongside energy firm EDF. Around £2.5bn was allocated to facilitate the development of Sizewell C. Efforts are ongoing to secure a Final Investment Decision.
GAD has utilised its expertise in long-term funding models to provide guidance to DESNZ as it engages with the Sizewell C company and its stakeholders.
The Sizewell C power station in Suffolk is set to generate low-carbon electricity for approximately 6 million homes. It will closely resemble Hinkley Point C, which is currently under construction in Somerset. This similarity is anticipated to provide greater certainty regarding the project’s design, costs, and schedule, thereby mitigating overall delivery risks.
In contrast to Hinkley Point C, Sizewell C will be financed using the Regulated Asset Base (RAB) model. Under this model, the operating company obtains a licence from an economic regulator.
The operator can then levy a regulated price on consumers in return for supplying electricity and the necessary power generation infrastructure. This approach is expected to lower project financing costs.
DESNZ Policy Resilience, Nuclear Projects and Development Directorate Alex Jones said: “We worked with GAD to develop policy on the Regulated Asset Base funding structure. This relationship then naturally followed to using their support on Sizewell C.
“They operate as consultants and are also civil servants. They understand government’s mission, we work as one team.”
The operational lifespan of Sizewell C, including its eventual decommissioning, is projected to exceed 100 years. Comprehensive plans have been developed for each phase of the project.
