Must Sizewell C justify itself in pounds, shillings and pence?

Critics of the proposed Sizewell C nuclear power station argue that every project must justify itself in pounds, shillings, and pence. However, this perspective overlooks the bigger picture, particularly in the current energy landscape. John Maynard Keynes warned against the "vile doctrine" of requiring such justification for every project in 1942, and his wisdom resonates even today.

The Public Accounts Committee recently scrutinized Sizewell C's finances, but missed a crucial point. Instead of comparing it to a counterfactual deal that was never considered, a deal that would have deterred investors and caused further delays, the PAC compared it to a deal that includes the project. This comparison led to a flawed assessment.

The real choice was always between this deal and no power station at all. In recent years, the government, led by a Labour administration, has taken decisive action to move forward, making choices that will impact future generations. The Sizewell C project is a significant opportunity to address the impact of global gas prices, which have risen by 58% since the war in Ukraine, putting a strain on British families' monthly energy bills.

With Sizewell C, the country will have a reliable source of homegrown power for 6 million homes for at least sixty years, saving about £2 billion annually. While there is a cost during construction, the regulated asset base (RAB) model can reduce financing costs and, consequently, the cost of electricity. The project already contributes to the economy, with over 1,000 UK suppliers winning £5 billion worth of contracts, 77% of the steel sourced domestically, and 1,500 apprenticeships created.

Moreover, Sizewell C has a head start over Hinkley Point C, having learned from its lessons, and its design is nearly identical to Hinkley Point C's, allowing for quicker delivery. The Chancellor has also introduced measures to reduce household energy costs, but a long-term solution is needed, and that is what Sizewell C offers: a clean, domestic energy source that keeps bills low for decades.

With Sizewell C, small modular reactors, and further large-scale nuclear sites supported by reforms like Fingleton, the UK could build more new nuclear power plants than in the last fifty years. It's crucial not to dismiss this opportunity to revitalize nuclear energy and secure Britain's energy future. Scrutiny is essential, but the committee's questions are long overdue.

Decades of hesitation in making nuclear energy decisions have been detrimental to families. Sizewell C represents what thinking big looks like, ensuring the lights stay on and bills remain low when today's apprentices are drawing their pensions.