Overview
- The government reached Heads of Terms on Wednesday, July 8, 2026, with EDF and Centrica to extend Sizewell B’s operating life by 20 years to 2055.
- The deal includes a Contract for Difference that fixes the strike price at £70.50 per megawatt‑hour in 2025 prices for the 2035–2055 period.
- Centrica has pledged roughly £800 million for refurbishment work to enable safe operation through the extension and the move is expected to preserve about 900 on‑site jobs.
- A Contract for Difference guarantees a price to the generator and protects consumers from volatile wholesale prices by paying the difference if market prices fall below the strike or taking payments back if prices rise.
- Officials say the extension will keep low‑carbon baseload capacity online, reduce system costs compared with alternatives, and bridge supply until new projects such as Hinkley Point C and Sizewell C come online, but the agreement is not final until the long‑form contract and all regulatory approvals are completed.