|
Centrica PLC on Thursday said the UK government has signed heads of terms for a 20-year regulated contract that will support the life extension of the Sizewell B nuclear power station from 2035 to 2055. The Windsor, England-based energy firm, which holds a 20% stake in the 1.2-gigawatt plant, said Sizewell B will receive an inflation-linked contract-for-difference strike price of £70.50 per megawatt hour, based on 2025 prices, providing predictable revenues. Centrica said the agreement underpins a fair return on around £800 million of life extension investment, which it expects to fund through existing operating cash flows from its nuclear partnership with EDF Energy, without requiring additional equity. The FTSE 100-listing, which owns British Gas, expects the final contract with the UK government to be completed later this year. Chief Executive Chris O’Shea said: ‘We welcome the constructive engagement with Government in reaching this agreement, providing the certainty needed to support the required investment. The agreement gives Sizewell B a clear, regulated framework through to the 2050s. This further strengthens Centrica’s portfolio of long-term infrastructure assets with predictable earnings, which includes the neighbouring new nuclear power station, Sizewell C.’ Sizewell B is one of the UK’s five operational nuclear power stations and provides zero-carbon electricity to power around 2.5 million homes a year. In addition to Centrica’s 20% ownership of the UK’s operational nuclear fleet, the company is also supporting the development of new nuclear in the UK. Last July, Centrica acquired a 15% stake in the neighbouring Sizewell C, a new 3.2GW power station under construction in Suffolk, while last September, it signed a joint development agreement with X-energy for the UK’s first advanced modular reactor fleet. Shares in Centrica rose 0.1% to 171.65 pence each in London on Thursday. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
