Consultation outcome

Modifications to the Sizewell C Regulated Asset Base licence

From:
Department for Energy Security and Net Zero
Published
6 November 2023
Last updated
8 April 2024 — See all updates
This was published under the 2022 to 2024 Sunak Conservative government
This consultation has concluded

Read the full outcome

Modifications to the Sizewell C Regulated Asset Base licence: government response

PDF, 278 KB, 30 pages

Detail of outcome

We sought views on proposed modifications to Sizewell C (SZC) Limited Company’s electricity generation licence. The modifications would:

  • allow SZC Limited to collect revenue through the Regulated Asset Base (RAB) model
  • put in place a series of incentives and penalties to drive the efficient construction, commissioning and operation of the planned SZC nuclear power plant in Suffolk

The government response outlines the changes we plan to make to the licence in light of responses to the consultation. The changes seek to deliver the right balance of risk to ensure the project is both investable and provides protection for consumers.  

We will publish the final licence once it has been modified.

Detail of feedback received

We received responses from all the statutory consultees as defined in the Nuclear Energy Financing Act (2022):

  • Sizewell C Limited (the ‘licensee’)
  • Ofgem (the ‘economic regulator’)
  • Environment Agency (EA)
  • Office for Nuclear Regulation (ONR)

and also from the following nominated consultees:

  • EDF
  • Consumer Scotland
  • Citizens Advice
  • Pre-qualified equity investors

While this consultation did not seek views on the decision to finance the SZC project through the RAB model, overall, the responses were broadly supportive of the use of a RAB, as well as the specific modifications proposed.

Original consultation

Summary

We're seeking views on proposed modifications to Sizewell C Limited Company’s electricity generation licence.

This consultation ran from
to

Consultation description

This consultation seeks views on proposed modifications to Sizewell C Limited Company’s electricity generation licence. In line with duties in the Nuclear Energy (Financing) Act 2022, the Secretary of State is required to consult on any proposed modifications.

These modifications seek to allow Sizewell C Limited to collect revenue through the Regulated Asset Base (RAB) model and puts in place a series of incentives and penalties to drive the efficient construction, commissioning and operation of the planned Sizewell C nuclear power plant in Suffolk.

In line with the provisions of the Nuclear Energy (Financing) Act 2022, the Secretary of State is consulting with:

  • the licensee (Sizewell C Limited)
  • Ofgem
  • the Environment Agency
  • the Office for Nuclear Regulation
  • EDF
  • Citizens Advice
  • Consumer Scotland
  • potential investors who have prequalified for the equity raise process

Read the consultation document in conjunction with:

  • the draft licence available on this page
  • the economic guidance on Ofgem’s website

Read our consultation privacy notice.

Documents

Regulated Asset Base licence: modifications to Sizewell C Limited’s electricity generation licence

PDF, 341 KB, 34 pages

DRAFT: Electricity generation licence: special conditions for nuclear generator (redacted)

PDF, 1.49 MB, 330 pages

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Updates to this page

Published 6 November 2023
Last updated 8 April 2024 + show all updates

  1. Government response published.

  2. First published.

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