Scheme under threat in upcoming fiscal statement
Plans to build a new nuclear power station on the Suffolk coast have been thrown into jeopardy, with reports that the Sizewell C scheme is under review and could be delayed or even scrapped.
The project was green-lit by the government in July but with a new administration searching for savings, it appears the case for 拢20bn EDF scheme is being re-examined.
With chancellor Jeremy Hunt set to announce new tax and spend plans on November 17, a government official reportedly told the BBC that the government was reviewing 鈥渆very major project 鈥� including Sizewell C鈥�.
Cancelling the project would be a major about-turn for government energy policy and for Sunak himself, who in the summer leadership campaign said he would uphold ex-PM Boris Johnson鈥檚 promise 鈥� laid out in this year鈥檚 energy security strategy 鈥� to build eight new reactors.
One chief executive of a major contractor told 好色先生TV he wasn鈥檛 too surprised to see big-ticket schemes being put under the microscope.
鈥淲hat they鈥檙e doing is a sort of market testing exercise. Say something might be chopped, like HS2, Sizewell or a big road scheme, and see what the reaction is to it.鈥�
Former chancellor and then-business secretary Kwasi Kwarteng granted Sizewell C a development consent order in July, citing the 鈥渧ery substantial and urgent need鈥� for the project against Planning Inspectorate warnings of its environmental impact.
The board of French energy giant EDF, which would develop and operate the plant, recently 鈥渦nanimously approved鈥� plans to take a 20% stake in the scheme was expected to officially sign off on the funding after the UK budget is announced.
The UK government has committed to taking a further 20% stake, with the remaining 60% to be obtained privately.
Opponents of the scheme have been buoyed by reports of its potential demise, with Stop Sizewell C saying it could 鈥渙nly offer short term pain 鈥� with more money on our energy bills 鈥� for long term pain, with huge uncertainty about cost and time鈥�.
鈥淭he Chancellor has said that eye-wateringly difficult decisions are needed so it鈥檚 right that eye-watering expensive projects go under the microscope,鈥� a spokesperson said.
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