Referral of the proposed subsidy to EDF Energy Nuclear Generation Ltd by the Department for Energy Security and Net Zero

3 September 2026: The SAU has published its report providing advice to DESNZ concerning the proposed subsidy to EDF Energy Nuclear Generation Ltd. The report sets out the SAU’s evaluation of DESNZ’s Assessment of Compliance of its proposed subsidy with the requirements set out in the Subsidy Control Act 2022.  

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.