Notice

Sizewell C equity raise process

Published 18 September 2023

Overview

As announced by the Secretary of State for Energy Security and Net Zero on 18 September 2023, following agreement with our co-shareholder EDF, the government and Sizewell C Limited (the company) are commencing pre-qualification for potential investors, as the first stage of an equity raise process for the Sizewell C project.

New nuclear projects like Sizewell C are key to the government’s plans for enhancing UK energy security and for reaching Net Zero, by helping to achieve a long-term electricity system which is secure and stable, low-cost and low-carbon.

The government has assessed that seeking private investment through the RAB structure has true potential to result in a good value for money outcome for consumers and taxpayers, as the RAB structure is set up to incentivise the company (and in turn, the private investors) to drive the project’s construction to schedule and ultimately help to promote efficiency and enhance overall value.

To ensure that this investment benefits the company, consumers and taxpayers, specific attributes are being sought.

Specifically, we are aiming to obtain investment from organisations able to take a meaningful stake in the company. Being able and willing to own a significant part of the company’s equity will be vital in ensuring that investors are able to have a substantial and positive influence on delivery over the construction period. It will also ensure that investors are meaningfully exposed to the incentives included in the company’s licence, motivating them to monitor and intervene in delivery.

Additionally, private sector investors must bring sufficient benefits to the company to justify their involvement.

For this reason, Investment is being sought from those with significant experience in the delivery of major infrastructure projects, especially in large-scale nuclear or other complex energy or infrastructure projects. Drawing from this experience would ensure Sizewell C benefits from expertise in areas such as project risk management, cost control, and instilling projects with a culture of commercial focus.

In taking this stake, at the time of a positive Final Investment Decision, investors would be expected to make a commitment to their share of the company’s equity requirement. This would provide confidence to the government, EDF and the company that new investors would fulfil their shareholder obligations as Sizewell C moves into the full construction phase.

The government is clear that the interests of consumers and taxpayers are central as to this process, and will only accept private investment if it is likely to result in value for money. This approach will be assessed and considered over the coming months, and the government will take the time needed to reach a deal which satisfies this objective.

Process

As was set out in the written ministerial statement, the first stage in this process will be for prospective investors to enter the process through completion of the pre-qualification questionnaire (PQQ), which will set out certain requirements in more detail which prospective investors will need to meet in order to pre-qualify.

The PQQ is a bidding requirement for the equity raise, and compliance with it is a pre-requisite for any potential investor to be eligible for participation in the rest of the process. To request the PQQ, potential investors should email SZCequityraise@energysecurity.gov.uk.

Before granting access to the PQQ documentation to any entities or individuals, verification checks may be undertaken to ensure that PQQ applicants are bona fide investors who wish to respond to the PQQ.

The investors requesting the PQQ will be required to confirm their acceptance of certain confidentiality conditions before receiving access to these materials. Thereafter, the relevant person shall be provided with the PQQ and a teaser relating to the project.

Investors who have received the PQQ will have until noon on Monday 9 October 2023 to submit their responses to the pre-qualification questions. All details (including the submission requirements, method of submission, clarifications process and assessment criteria) are set out in the PQQ document.

Following assessment of their responses, the investors who have been successful in the pre-qualification phase shall be invited to participate in the bidding process for the Sizewell C equity raise. Further details on this next stage will be provided in due course, to the investors who have successfully pre-qualified. Investors who are not successful in this phase shall also be notified. 

Disclaimers

The Secretary of State and Sizewell C GenCo reserve the right to amend or discontinue the equity raise process at any time and all participants will be responsible for their own costs in responding to the pre-qualification questionnaire. The equity raise process is not subject to the Utilities Contracts Regulations 2016 or the Public Contracts Regulations 2015.

Further enquiries

As above, to request a PQQ and to participate in the equity raise process, potential investors should contact SZCequityraise@energysecurity.gov.uk. This email address should also be used for any further enquiries these potential investors have as they complete any verification checks, and the PQQ itself.

If you are a member of the public, or have a more general enquiry about the Sizewell C project, please contact SZCpublicenquiries@energysecurity.gov.uk.

For media enquiries, please contact the department’s News Desk on newsdesk@energysecurity.gov.uk or call 020 7215 1000.