Sizewell C cost ‘has doubled since 2020 and could near £40bn’
The cost of building the Sizewell C nuclear power plant in Suffolk has doubled since the plans were presented to the UK government in 2020 and could now reach close to £40bn, according to reports.A rise in construction charges over recent years, combined with cost overruns and delays at EDF’s Hinkley Point C nuclear project in Somerset is expected to increase the final bill to build a successor project at Sizewell, according to the Financial Times.A report cited people close to the talks between EDF and the government, which are focused on how to finance the nuclear project.The Treasury is expected to decide whether to back the project in this year’s spending review.According to the report, one senior government figure and two well-placed industry sources said that the cost of building Sizewell C would be about £40bn in 2025 prices.
A government spokesperson said: “We do not recognise this speculative figure – discussions with investors are ongoing and commercially sensitive.” EDF has also been contacted for comment.In a statement, Sizewell C’s co-managing directors, Julia Pyke and Nigel Cann, said the claims about Sizewell C’s costs were “not accurate and do not reflect the significant savings we are already making” following its work on Hinkley Point C.“The real question to ask is what is the cost of not doing Sizewell C.This winter we have seen prolonged periods of dull, calm weather and low output from wind and solar.
At times, gas provided more than 60% of our power needs, pushing up electricity prices and adding to our carbon emissions.A low carbon future needs new British nuclear, for lower electricity costs, energy security and thousands of great jobs which will help to transform communities across the country,” the pair said.France’s top audit body warned on Tuesday that the country was “far from ready” to build the six nuclear reactors announced by the president, Emmanuel Macron, in 2022.In a new report, the court of auditors said delays were already accumulating at Sizewell C.It recommended that EDF should secure new investors for Hinkley, reducing its financial exposure to that project, before making a final investment decision on Sizewell C.
The fresh concern over costs has emerged weeks after the Labour donor and green energy entrepreneur Dale Vince challenged the government’s new value for money tsar to examine the costs of a nuclear power.Vince wrote late last year to the chair of the government’s new Office for Value for Money (OVfM), David Goldstone, to say that the nuclear plant had rising costs and would “will saddle consumers with higher bills long before it delivers a single unit of electricity”.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionThe UK government and the French state-owned company EDF will fund about 40% of the Sizewell C project, which is planned to generate enough electricity to power 6m homes.Government officials are now gauging interest from private investors to meet the rest of the costs.The government has proposed using a different financial model to support Sizewell than was used to back the Hinkley Point scheme, and is expected to be given the final go ahead in June’s review of public spending.
Under Hinkley’s agreement EDF can only begin to earn revenues from the project when it begins generating power, which has put enormous financial strain on the company due to escalating construction costs.But under the new framework EDF would be able to recoup its costs as soon as it starts construction, which has raised concerns that consumers and taxpayers will be on the hook for delays and overruns.“If Hinkley Point C is anything to go by, Sizewell C really should have rigorous financial scrutiny,” Vince wrote.“Originally priced at £18bn, the cost of Hinkley has ballooned to £46bn and then there’s the delays.Back in 2007, the then EDF chief executive Vincent de Rivaz said that by Christmas 2017 we would be using electricity generated from atomic power at Hinkley.
We’re now in Christmas 2024 and Hinkley isn’t due to be completed until 2031.”The government spokesperson said: “New nuclear power stations such as Sizewell C will play an important role in helping the UK achieve energy security and net zero, while securing thousands of good, skilled jobs and supporting our energy independence beyond 2030.The project is expected to reduce the cost of the electricity system, boost our supply of secure homegrown power and generate major investment nationwide.”
Frasers Group says two-thirds of retail staff are still on zero-hours contracts
The owner of Sports Direct has confirmed that two-thirds of its retail workforce remain on zero-hours contracts ahead of new legislation designed to limit their use.Frasers Group told MPs who are examining plans to strengthen protection for employees that 11,500 staff were on the contracts, which do not guarantee any weekly working shifts, and did not receive compensation even if shifts were changed at the last minute.MPs on parliament’s business and trade select committee also heard that three-quarters (4,000) of the 5,200 people employed at the group’s main warehouse in Derbyshire are agency workers who can be let go without notice, more than eight years after the company promised MPs it would move them on to permanent contracts.The testimony came from Andy Brown, chief people officer at Frasers Group – which owns House of Fraser, the luxury streetwear chain Flannels, Evans Cycles and Sports Direct. He admitted the pace of change was “certainly not fast”, with an average 200 people a year shifting from agency to permanent contracts over the past three years
New year downers are becoming normal at JD Sports | Nils Pratley
It wasn’t a full-on profits warning – more of a 5%-ish trim to forecasts. But JD Sports’ trading update will feel particularly disappointing to its shareholders because this was the second January in a row that the sportswear retailer has delivered a new year downer on profit expectations. The spiel was also identical, more or less.A year ago, the group blamed “more cautious consumer spending” and “an elevated level of promotional activity during the peak trading period”. On Tuesday it cited “a challenging and volatile market that saw increased promotional activity” as revenues fell 1
US sues Elon Musk for allegedly failing to disclose early Twitter stock purchase
A US financial regulator has sued Elon Musk for allegedly failing to disclose his ownership of Twitter stock and later acquiring shares in the company at “artificially low prices”, stiffing other shareholders.The Securities and Exchange Commission (SEC) filed suit against Musk late on Tuesday in Washington DC federal court for alleged securities violations. According to the suit, Musk did not disclose that he had acquired a 5% stake in the company in a timely manner, which allowed him “to underpay by at least $150 million for shares he purchased after his financial beneficial ownership report was due”.Alex Spiro, a lawyer for Musk, told Bloomberg that the SEC’s case amounted to “an admission” that the agency had no case. Musk, Spiro said, “has done nothing wrong and everyone sees this sham for what it is”
Chinese officials reportedly discuss sale of TikTok in US to Elon Musk
Chinese officials have reportedly held preliminary talks about a potential option to sell TikTok’s operations in the US to the billionaire Elon Musk, should the short-video app be unable to avoid an impending ban. Another option is that Musk acts as a broker in a deal to sell the app.Beijing officials prefer that TikTok remains under the control of its Chinese parent, Bytedance, but have discussed other options including a sale to Musk, Bloomberg reported. The Financial Times reported on the same day that the officials had discussed the preliminary possibility of Musk functioning as a go-between for Bytedance and any potential buyer that would prevent the app from being shut down.“We can’t be expected to comment on pure fiction,” a TikTok spokesperson said, responding to the report
Police report says former MLB pitcher Brian Matusz died at 37 of likely overdose
The former Baltimore Orioles pitcher Brian Matusz died at the age of 37 after an apparent drug overdose, according to police documents.The Orioles announced Matusz’s death last week. According to a report by the Phoenix Police Department obtained by the Baltimore Banner, Matusz’s body was found by his mother, Elizabeth, on 6 January after she went to check on him in his home. A lighter, straw and a small square of aluminum foil, often used for ingesting drugs, were near his body. The report says police are not treating the death as suspicious
Man charged with stalking Caitlin Clark disrupts court hearing
A man charged with stalking and harassing basketball star Caitlin Clark was rebuked after becoming disruptive during a court appearance on Tuesday.Michael Lewis, of Denton, Texas, was arrested on Monday at a hotel in Indianapolis, where Clark plays for the Indiana Fever, after allegedly sending threatening messages to the WNBA star, some of which were sexual in nature.The 55-year-old Lewis sat back in his chair when he entered Marion County Superior Court and said “guilty as charged”. He went on to interrupt the proceedings on several occasions, saying “I guess you got the wrong guy”. He also said “I need my medicines” when the court asked him if he had any mental health issues
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