EDF, Centrica Close to Draft Deal with UK to Extend Sizewell B — Bloomberg

• The proposed payment rate is approximately 70 pounds ($93.69) per megawatt-hour generated from the extended operations
• EDF Energy stated the deal would unlock 800 million pounds ($1.07 billion) of investment in the plant
• Centrica holds a 20% stake in EDF Energy's UK nuclear generation business, which includes Sizewell B

Summary: EDF, Centrica Near Deal to Extend Sizewell B Nuclear Plant Operations

French energy giant EDF and British utility Centrica are close to finalizing a draft agreement with the UK government to extend the operational life of the Sizewell B nuclear power station by 20 years, according to Bloomberg News sources.

Key Details:

Financial Terms:

• The plant would receive approximately £70 ($93.69) per megawatt-hour generated under the proposed terms
• The deal would unlock £800 million ($1.07 billion) in investment for the facility

Stakeholders:

• EDF operates the facility with Centrica holding a 20% interest in EDF Energy's UK nuclear generation business
• Negotiations involve the UK Department for Energy Security and Net Zero
• A heads of terms agreement is expected to be announced within weeks

Strategic Significance:

• Sizewell B supplies nearly 1.2 gigawatts of electricity to the UK grid
• It is the only pressurized-water reactor operating in the United Kingdom
• Located on the North Sea coast in Suffolk

Market Implications:

This agreement represents a significant commitment to nuclear energy as part of the UK's energy security and net-zero carbon strategy. The 20-year extension and substantial investment demonstrate the government's reliance on nuclear baseload power amid energy transition challenges. For EDF and Centrica, the deal provides long-term revenue certainty through the guaranteed price per megawatt-hour, while supporting grid stability in Britain's evolving energy landscape.

The companies and government department have not yet provided official comments on the reported negotiations.