Sizewell B nuclear power station in Suffolk has secured a 20-year extension to its operational lifespan, allowing it to continue generating electricity for the UK until 2055.
The plant, which currently supplies approximately 3 per cent of the nation’s total electricity needs, was originally scheduled for decommissioning in 2035.
The agreement, struck between the Government and owner EDF, with investment and support from Centrica, which holds a 20 per cent stake, outlines a new pricing structure.
From 2035, electricity generated will be paid at £70.50 per megawatt hour, based on 2025 prices, under a “contract for difference” model.
Officials stated that this deal is expected to significantly reduce costs within Britain’s energy system and shield billpayers from the volatility of fossil fuel markets.
Furthermore, the extension is projected to provide clean electricity for 2.5 million homes and safeguard 900 skilled jobs in the Suffolk region.
The Government highlighted that had Sizewell B been operating under such a “contract for difference” arrangement during the energy price surge following Russia’s invasion of Ukraine – rather than benefiting from elevated power prices driven by high gas costs – consumers could have saved an estimated £2 billion.
Energy Secretary Ed Miliband said: “Nuclear power is vital for our energy security, and this extension will help produce the clean power our country needs.”
Chancellor Rachel Reeves, said: “Sizewell B is a vital part of Britain’s energy future, and this agreement secures clean, homegrown power for millions of homes until 2055.
“It is also a real vote of confidence in the hundreds of skilled workers in Suffolk who will power Britain’s clean energy future, delivering the long-term certainty that businesses and workers need.”
The Government is also backing projects including Britain’s first small modular reactors in Anglesey and the construction of Sizewell C alongside Sizewell B as part of what it says will be a new “golden age” of nuclear.
Chris O’Shea, the chief executive of Centrica, said: “I’m delighted that Sizewell B will continue to play a key role in the UK’s energy system for decades to come.
“We welcome the constructive engagement with Government in reaching this agreement, providing the certainty needed to support the required investment.”
He said the “contract for difference” deal “gives Sizewell B a clear, regulated framework through to the 2050s” and also “strengthens Centrica’s portfolio of long-term infrastructure assets”.
Centrica, which owns British Gas, acquired a 15 per cent stake in the neighbouring Sizewell C which is currently under construction.
The Government is the biggest equity shareholder in the nuclear development, with a 44.9 per cent stake.
