A report from the United Kingdom’s National Audit Office (NAO) has concluded that electricity generated by the planned Sizewell C nuclear power station in Suffolk is likely to cost consumers more than electricity from the Hinkley Point C project in Somerset.

This finding comes despite earlier government and industry claims that Sizewell C would be cheaper overall because its construction costs are projected to be lower.According to the NAO, Sizewell C is expected to cost between £38 billion and £48 billion to build, around 22 percent less than Hinkley Point C.However, the report explains that the financing and pricing structure of the two projects differs significantly.Hinkley Point C agreed to a fixed electricity price before construction costs escalated, meaning its developer, EDF, absorbs many of the overruns.In contrast, Sizewell C’s financing model and higher borrowing costs are expected to increase the final price paid by consumers.The watchdog estimates that electricity from Sizewell C could cost between £131 and £155 per megawatt hour in 2024-2025 prices.By comparison, Hinkley Point C electricity is priced at approximately £129 per megawatt hour.

The report highlights how rising borrowing costs and the timing of financing agreements have affected the economics of nuclear energy projects in the UK.

The article, originally referencing reporting from the Financial Times, also reflects wider public debate over the affordability and long-term value of large-scale nuclear power developments.

Critics have questioned whether these projects provide cost-effective energy compared with renewable alternatives, while supporters argue nuclear energy remains important for energy security and reducing carbon emissions.