WASHINGTON, D.C. — The public accounts committee warned that the government’s £48 billion Sizewell C nuclear project could become a “terrible deal” for taxpayers, with an extra £9.8 billion required before 2040 and £12 billion over its 60‑year life.

The committee’s report, released on Tuesday, said the projected cost could rise to nearly £48 billion, far above the £22 billion originally budgeted. It warned that the extra £9.8 billion needed to finish construction before 2040 would be shouldered by electricity consumers, while the £12 billion operating subsidy would be spread across six decades of billpayers.

London’s FTSE 250 index slipped 0.8 percent on the news, with shares of nuclear‑focused firms such as EDF Energy and Horizon Nuclear falling 2‑3 percent each. Analysts said the heightened fiscal exposure could dampen appetite for UK‑based infrastructure assets, especially as investors compare the deal with lower‑cost renewable projects.

“Investors will demand higher yields to fund a project that places such a long‑term burden on the public,” said Laura Chen, senior analyst at GreenBridge Capital. The higher financing costs could push the effective cost of capital on the Sizewell C loan tranche above 7 percent, a level that rivals emerging‑market sovereign debt.

U.S. Federal Reserve policy also looms large. With the Fed keeping its benchmark rate near 5 percent, global bond yields have risen, increasing the cost of borrowing for the UK government. Treasury Secretary James Cameron noted that “higher US rates feed through to UK gilt yields, tightening the fiscal space for large‑scale projects.”

Energy minister Claire Hawkins defended the plan, arguing that nuclear capacity is essential for meeting the UK’s net‑zero target by 2050. However, the PAC chair, MP Sir John Miller, countered that “the extraordinary risk to billpayers cannot be justified when cheaper, faster‑to‑deploy renewables are available.”

Key Takeaways

• Projected total cost of Sizewell C could reach £48 billion, nearly double the original estimate.
• Billpayers may face an additional £9.8 billion before 2040 and £12 billion over the plant’s 60‑year life.
• Higher global interest rates, driven by Fed policy, could raise financing costs and pressure UK infrastructure markets.

While the government maintains that nuclear energy is vital for long‑term energy security, the public accounts committee’s stark assessment underscores growing scrutiny of large public‑financed projects amid tighter fiscal conditions and volatile capital markets.