It may be the case that the size of capital outlay means that private investors will not repeat a CfD contract for new nuclear, whatever the price. But the lack of alternative choices should not mean that any terms will be acceptable for a RAB financed plant. The Government should make, and disclose, its best estimate of the value of the risk that would be taken on by the public, and a clear plan of how those risks can be managed through incentives during the development, construction and ope...

It may be the case that the size of capital outlay means that private investors will not repeat a CfD contract for new nuclear, whatever the price. But the lack of alternative choices should not mean that any terms will be acceptable for a RAB financed plant. The Government should make, and disclose, its best estimate of the value of the risk that would be taken on by the public, and a clear plan of how those risks can be managed through incentives during the development, construction and operational phase of the project’s lifetime. (Paragraph 220) 106 Delivering nuclear power Type: recommendation | Number: 42 | Response status: under_consideration Government response: In establishing use of the RAB model for use on nuclear projects, the Government followed the recommendation of the National Audit Office that such a model could represent better value for money to consumers than the Contract for Difference model used at Hinkley Point C, by reducing the cost of proj