Notice

Outcome of closed consultation, and feedback received

Updated 21 March 2025

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This publication is available at https://www.gov.uk/government/publications/methodology-for-specific-elements-in-the-proposed-economic-licence-for-sizewell-c/outcome-of-closed-consultation-and-feedback-received

Detail of outcome

This consultation sought views on the proposed methodology for setting the:

  • Initial Weighted Average Cost of Capital (IWACC)
  • Cost of Debt Adjustment (CDA)
  • Lower Regulatory Threshold / Higher Regulatory Threshold (LRT/ HRT)

in the Regulated Asset Base (RAB) License for Sizewell C (SZC). In line with duties in the Nuclear Energy (Financing) Act 2022, the Secretary of State is required to consult on any proposed modifications.

These would allow SZC Limited to collect revenue through the Regulated Asset Base (RAB) model and 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.

HMG has considered all consultation responses and a full response to these is contained in the published document.

The Economic Licence has previously been consulted on and the final licence will be made publicly available at the point of modification.

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 (c/o GEMA) (the economic regulator)
  • Environment Agency (EA)
  • Office for Nuclear Regulation (ONR)

We also received responses from the following nominated consultees:

  • EDF
  • Consumer Scotland
  • Citizens Advice
  • potential equity investors who had been invited to participate in Phase 2 of the equity raise competition.

The responses to this consultation stressed the importance of:

  • balancing risk between consumers and investors
  • a robust case that the Project will deliver value for money for consumers
  • the need for transparency and engagement with consumers ahead of the final licence modifications

This consultation response picks up issues which were not covered in the earlier Economic Licence Consultation.

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