Ministers unveil plan for funding new nuclear power – without China

Pushing the nuclear button: Ministers unveil model for funding new wave of power stations with Sizewell C set to get the go-ahead – but China WON’T be involved and electricity prices WILL rise

  • Kwasi Kwarteng is unveiling model for funding a new wave of nuclear power
  • The plan should reduce reliance on overseas investment including from China
  • Family bills set to rise to meet up-front costs rather than once power supplied  


Ministers today vowed to push the button on a new wave of nuclear power – but admitted electricity prices will rise.

Business Secretary Kwasi Kwarteng has unveiled legislation designed to bring in a wider range of investment.

The government is determined to reduce reliance on overseas money, meaning that China is expected to be shut out of projects including Sizewell C – which is in line for a green light.

But the new finance model will involve consumers helping bear the up-front costs of nuclear plants, rather than paying a premium when they start producing electricity.

That will potentially add £1 per week to an average household electricity bill.

While the move will delight Tory MPs who have been warning about growing Chinese influence, it risks the wrath of Beijing.   

The government is determined to reduce reliance on overseas investment in nuclear, meaning that China is expected to be shut out of projects including Sizewell C (artist’s impression)

Xi Jinping

Business Secretary Kwasi Kwarteng has unveiled legislation designed to bring in a wider range of investment

Business Secretary Kwasi Kwarteng has unveiled legislation designed to bring in a wider range of investment. But the move could anger Chinese premier Xi Jinping

The Nuclear Energy (Financing) Bill will use a model known as the Regulated Asset Base (RAB) to fund future nuclear power stations in Britain. 

The same template has been deployed on the Thames Tideway Tunnel ‘super-sewer’ and Heathrow Terminal 5. 

Previously developers have to finance the construction of nuclear projects until they start generating electricity. 

But the up-front burden has been blamed for the collapse of schemes including Hitachi’s project at Wylfa Newydd in Wales and Toshiba’s at Moorside in Cumbria. 

In future the costs could be shared with households as soon as the schemes get formal approval. The government argues that the finance mechanism will save consumers £30billion on each new large-scale nuclear plant. 

There is also hope in Whitehall that removing China from the equation will unlock investment from British pension funds and others. 

The state-backed China General Nuclear (CGN) has a 20 per cent stake in the current consortium proposing Sizewell C in Suffolk.   

Mr Kwarteng said: ‘In light of rising global gas prices, we need to ensure Britain’s electricity grid of the future is bolstered by reliable and affordable nuclear power that’s generated in this country.

‘The existing financing scheme led to too many overseas nuclear developers walking away from projects, setting Britain back years. 

‘We urgently need a new approach to attract British funds and other private investors to back new large-scale nuclear power stations in the UK.

‘Our new model is a win-win for nuclear in our country. Not only will we be able to encourage a greater diversity of private investment, but this will ultimately lower the cost of financing new nuclear power and reduce the costs to consumers and businesses.’

Currently around 16 per cent of the UK’s electricity generation comes from nuclear power, but many of the plants are due to be decommissioned.

The RAB model could also be used on new nuclear technologies, including Small Modular Reactors designed and built in the UK. 

The RAB investment template has been deployed on the Thames Tideway Tunnel 'super-sewer' and Heathrow Terminal 5 (pictured)

The RAB investment template has been deployed on the Thames Tideway Tunnel ‘super-sewer’ and Heathrow Terminal 5 (pictured)

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