Sizewell C Nuclear Plant Deal Slammed as Terrible for Taxpayers 2026

The UK government's plan to fund the multibillion-pound Sizewell C nuclear plant has been branded a “terrible deal” for UK taxpayers by the public accounts committee (PAC). The spending watchdog warns that costs could spiral to almost £48bn, leaving bill payers and taxpayers exposed to significant financial risk over the rest of the century.

The PAC's criticism comes after the government agreed to take a near-45% stake in the Suffolk project, which is seen as a successor to the heavily delayed Hinkley Point C in Somerset. Under the terms, the government holds 44.9%, while French state nuclear developer EDF owns 12.5%. The remaining shares are held by private investors including Centrica (15%), La Caisse (20%), and Amber Infrastructure (7.6%).

The government was forced to increase its stake after buying out Chinese state nuclear developer CGN, which had been allowed to hold a stake in the project. This buyout, combined with construction risks, has raised concerns that taxpayers will bear the brunt of any cost overruns.

Why MPs Call the Sizewell C Deal a Terrible Deal

According to the PAC, the government's financial exposure is “high level of risk” for both taxpayers and consumers. The committee highlights that bill payers could be asked to provide an extra £9.8bn to construct the plant before 2040, plus a further £12bn over its 60-year operating life. These figures are on top of the initial multibillion-pound investment.

The PAC's concerns are rooted in the structure of the deal, which uses a regulated asset base (RAB) model. This means consumers start paying for the plant through their energy bills before it generates any electricity. If construction is delayed or costs rise, those bills could increase further.

Moreover, the project's history with Hinkley Point C, which is years behind schedule and billions over budget, looms large. MPs fear that Sizewell C could repeat those mistakes, leaving taxpayers to foot the bill for any shortfalls.

The Financial Stakes: Cost Overruns and Consumer Bills

The potential cost of Sizewell C has been estimated at up to £48bn, a figure that could rise if supply chain issues or inflation persist. The PAC's report underscores that the government's 44.9% stake means it—and therefore taxpayers—will absorb a significant portion of any additional costs.

Consumer bills are also in the firing line. Under the RAB model, energy suppliers will charge customers a levy to fund the plant's construction. This levy is expected to add several pounds to annual household bills, but the exact amount remains uncertain.

Critics argue that the deal transfers too much risk to the public while private investors enjoy guaranteed returns. The PAC has called on the government to provide greater transparency and to renegotiate terms to protect taxpayers.

What This Means for UK Energy Security and Climate Goals

Despite the financial concerns, the government maintains that Sizewell C is essential for the UK's energy security and net-zero ambitions. Nuclear power provides reliable, low-carbon electricity, and the plant is expected to generate enough power for around 6 million homes.

However, the PAC's warnings raise questions about whether the UK can afford such large-scale projects without exposing consumers to undue risk. The committee suggests that alternative funding models or greater private sector involvement could reduce the burden on taxpayers.

The controversy also highlights the broader challenge of financing nuclear power, which has high upfront costs and long construction times. As the UK seeks to decarbonise its grid, balancing affordability with energy security will be crucial.

Key Takeaways from the Sizewell C Controversy

• Taxpayer risk: The government's 44.9% stake means taxpayers are on the hook for cost overruns.
• Consumer bills: Bill payers could contribute an extra £9.8bn before 2040 and £12bn over the plant's life.
• Cost uncertainty: Total costs could reach £48bn, with potential for further increases.
• Private investors: EDF, Centrica, La Caisse, and Amber Infrastructure hold minority stakes with guaranteed returns.
• Energy security: The plant is vital for low-carbon power but comes at a high financial risk.

Comparing Sizewell C's Funding Model with Other Energy Projects

The RAB model used for Sizewell C is not unique; it has been applied to other infrastructure projects like Thames Tideway Tunnel. However, its application to nuclear power is relatively new and contentious.

As the table shows, the RAB model shifts more risk to consumers compared to CfDs. This is a key reason why MPs are concerned about the Sizewell C deal.

The PAC's report also comes amid broader scrutiny of the UK's climate resilience. Recent wildfires, such as those near Sizewell, have highlighted the need for robust infrastructure planning. The Suffolk wildfire near Sizewell nuclear plant stabilizes after threatening the area, underscoring the environmental risks that nuclear plants must withstand.

In another incident, a wildfire near Sizewell nuclear plant devastates Suffolk heathland, raising questions about the site's safety and the potential impact on construction timelines. These events add to the pressure on the government to ensure Sizewell C is both financially and environmentally sound.

The financial implications of the Sizewell C deal are also reminiscent of other high-stakes ventures. For instance, the multibillion-pound mirage of fantasy football's financial reality shows how optimistic projections can mask underlying risks, a lesson that applies to large infrastructure projects. The background to this story is set out in Sizewell Wildfire Causes Devastation: UK Climate Risks Exposed. A related thread runs through Wildfire Near Sizewell Nuclear Plant Devastates Suffolk Heath.

As the government moves forward, it must address the PAC's concerns to avoid repeating the mistakes of Hinkley Point C. The Suffolk wildfire near Sizewell nuclear plant stabilises after 24 hours, but the financial firestorm over Sizewell C is just beginning. Taxpayers and consumers will be watching closely to see if the government can deliver a better deal. Earlier coverage in Wildfire Near Sizewell Nuclear Plant Devastates Suffolk Landscape shows how the argument developed. A closer look at the same subject appears in Sizewell Wildfire Devastates Suffolk Heathland: Key Lessons.