Referral of the proposed subsidy to EDF Energy Nuclear Generation Ltd by the Department for Energy Security and Net Zero
The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Department for Energy Security and Net Zero (DESNZ) concerning its proposed subsidy to EDF Energy Nuclear Generation Ltd.
Administrative timetable
| Date | Action |
|---|---|
| 3 September 2026 | SAU’s report to be published |
| 5 August 2026 | Deadline for receipt of any third-party submissions |
| 22 July 2026 | Beginning of reporting period |
Request from DESNZ
22 July 2026: The SAU has accepted a request for a report from DESNZ concerning the proposed subsidy to EDF Energy Nuclear Generation Ltd. This request relates to a Subsidy of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of DESNZ’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the subsidy provided by DESNZ
DESNZ is proposing to award a subsidy to enable the long-term operation of the Sizewell B nuclear power plant. DESNZ proposes to provide support through a bespoke Contract for Difference (CfD) arrangement with EDF Energy Nuclear Generation Limited (ENGL), the owner and operator of Sizewell B. Implementation of the Heads of Terms is subject to reaching agreement on the long form CfD, as well as required regulatory approvals.
Sizewell B commenced operation in 1995 and has generated more than 260 terawatt-hours of low carbon electricity. Without intervention, the plant is currently expected to cease operations in 2035, despite it being technically feasible for it to continue generating for at least an additional 20 years.
Under the proposed CfD, ENGL would receive revenue support linked to the difference between an agreed strike price and a reference wholesale electricity price. DESNZ states that the contract is intended to provide revenue certainty during the 20-year lifetime extension period (from 2035), which will support ENGL to undertake the activities required to enable the continued operation of the plant.
DESNZ states that extending the lifetime of existing nuclear power stations is the most cost-effective way of delivering further nuclear generation, and that analysis shows that extending Sizewell B will reduce overall system costs relative to a low carbon counterfactual without the project. It states that the subsidy is intended to contribute to government objectives, including security of supply as Sizewell B provides firm, low carbon electricity that is not dependent on weather conditions, and that the extension is expected to have a beneficial impact on jobs and the wider economy; the project will support a highly skilled workforce, sustaining the UK nuclear supply chain.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed subsidy to EDF Energy Nuclear Generation Ltd, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at sau-sizewellb2026@cma.gov.uk, copying the public authority: lifetimeextensions@energysecurity.gov.uk.
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with DESNZ. The SAU will send a copy of your submission to DESNZ together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with DESNZ using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
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SAU project team: sau-sizewellb2026@cma.gov.uk
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CMA press team: 020 3738 6460 or press@cma.gov.uk