Hinkley Point C ‘would have saved £1bn on bills in 2022’
FRENCH energy giant EDF claims its Somerset nuclear power plant would be able to save UK consumers more than £1 billion on energy bills this year alone if it was already up and running, writes Hannah Baker.
The company, which is constructing Hinkley Point C, has spoken out following comments made by the business secretary on Friday over the cost of plans to build more nuclear power stations in the UK.
Kwasi Kwarteng told householders to prepare for a “small rise” in energy bills as part of the Government’s proposals to fund a new fleet of reactors around the country.
But EDF said while there are upfront costs when building the stations, nuclear power could save consumers “much more” on energy bills over its lifetime.
“Nuclear power is zero carbon and will play a vital role in preventing any future energy crisis,” a spokesperson for EDF said.
“If Hinkley Point C were online today, it would have saved consumers more than £1bn on energy bills for 2022 alone.”
The Government’s energy strategy was published in April and has a fleet of new nuclear power plants its heart, with the Prime Minister suggesting a new reactor could be built every year.
It is hoped the Government’s funding model, announced in October, will attract a wider range of private investment into new nuclear power projects in the UK.
The Nuclear Energy (Financing) Bill will use a model known as the Regulated Asset Base (RAB) to fund future nuclear power stations in Britain – a method that financed infrastructure projects such as Thames Tideway Tunnel and Heathrow Terminal 5.
According to the department for business, the RAB model will reduce the UK’s reliance on overseas developers for financing new nuclear projects by increasing the pool of private investors to include British pension funds, insurers and other institutional investors.
But a large-scale project funded under this scheme will add a cost to UK households at a time when rising inflation is putting pressure on consumers.
Hinkley Point C is one of the largest building projects in Europe and, when complete, it is hoped the plant will be able to generate low-carbon electricity for six million homes over 60 years.
ENERGY price hikes could become smaller but more frequent under proposals from Ofgem. Here is a look at what impact the changes could have on customers and what those who are worried about bills can do in the meantime.
What impact could reviewing the price cap more regularly have on customers?
Instead of just having changes in October and April, there could also be reviews added in
January and July - meaning prices are reviewed quarterly rather than every six months.
Ofgem, which is consulting on the issue, said a more frequent price cap review would reflect the most up-to-date energy prices - meaning when prices eventually fall from current record highs, customers would see the benefit sooner.
How quickly could the proposed changes come in?
The consultation is open until June 14 2022. Ofgem would be looking to implement the reforms from October, meaning the first change under the new system would be made in January.
What about customers who are worried about being able to afford their bills?
Myron Jobson, senior personal finance analyst, said: “It is important to regularly review your spending habits to ensure that you are living within your means and plan ahead to avoid money worries in future.
“Those struggling to keep on top of their energy bills needn’t suffer in silence - there is support out there. Energy companies have schemes to help people who are struggling to afford their bills.”
Ofgem has information for people who are struggling with their bills on its website at