SIZEWELL B nuclear power station has been granted a 20-year lifetime extension by the government, allowing it to generate electricity until 2055.

The Suffolk plant, which meets around 3 per cent of Britain’s electricity needs, had been due to close in 2035.

Under the new “contract for difference” deal agreed with owner EDF and Centrica, electricity will be paid at £70.50 per megawatt-hour from 2035.

The government said the deal would reduce costs to Britain’s energy system, protect billpayers from volatile fossil fuel markets and maintain 900 skilled jobs in Suffolk.

It said consumers would have saved around £2 billion had the plant operated under this model during the price spike caused by the Russia-Ukraine war.

Energy Secretary Ed Miliband said: “Nuclear power is vital for our energy security and this extension will help produce the clean power our country needs.”

Centrica chief executive Chris O’Shea said the deal “gives Sizewell B a clear, regulated framework through to the 2050s” and “strengthens Centrica’s portfolio of long-term infrastructure assets.”

Campaigners have opposed the site over concerns about environmental impact and long-term safety.