The parliamentary public accounts committee has criticized the government’s funding arrangement for the Sizewell C nuclear reactor in Suffolk, describing it as disadvantageous to British taxpayers. According to the watchdog, the project could ultimately cost approximately £48bn, requiring an additional £9.8bn in public funds before 2040 and a further £12bn across its 60-year operational period. The committee raised concerns about an asymmetrical risk distribution, noting that taxpayers and consumers face substantial exposure while private investors would contribute only £30m toward any cost overruns.
The funding structure places the UK government as the majority stakeholder with a 44.9% share, while EDF holds 12.5%. Private investors include Centrica at 15%, Canadian investment group La Caisse at 20%, and Amber Infrastructure at 7.6%. The government acquired its larger-than-expected stake after purchasing out Chinese state nuclear developer CGN due to national security considerations. The government estimates construction costs between £40.5bn and £47.7bn, with completion targeted between 2039 and 2043.
PAC chair Sir Geoffrey Clifton-Brown stated that the risk concentration on taxpayers and consumers is extraordinary, while private investors stand to achieve significant returns. He called on the government to ensure successful project delivery to prevent similar arrangements in future nuclear ventures. Campaign groups and academics opposing the project have argued that abandoning Sizewell C today would prove less expensive than accepting inflated energy bills across six decades.
The government defended its approach, noting that the deal’s terms incentivize private partners to minimize construction costs and time. Officials stated the operational plant could save £2bn annually across the broader energy system and reduce household energy bills. The nuclear industry has emphasized that Sizewell C would provide reliable low-carbon power while reducing costs associated with managing grid instability.
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