Ofgem has conveyed its concerns to the Energy Secretary regarding proposed modifications to the Sizewell C project’s Regulated Asset Base licence.
In a letter, Ofgem underscores the importance of certainty in underlying project costs and contracts for the economic regulatory regime’s fairness to consumers, taxpayers and potential investors.
The letter emphasises the need for thorough progress on all aspects of the project before implementing any licence modifications, especially in light of “challenges” faced by EDF with the construction of Hinkley Point C.
The energy regulator said: “It is important to ensure all aspects of the project are appropriately progressed before making licence modifications.
“This is especially pertinent given the ongoing challenges being experienced by EDF with the construction of Hinkley Point C, which shares many design elements with the proposed Sizewell C plant.
“When considering responses to this consultation, our expectation is that the Department for Energy Security and Net Zero (DESNZ) will continue to ensure that value for money for consumers is a priority consideration in any analysis and decision making around potential changes to the licence, and that any changes made are well justified and evidenced.
“In addition, it is vital that DESNZ also takes into account the effect of any potential changes on the overall operability of the licence and Ofgem’s ability to effectively discharge our obligations over time.”
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