Nuclear power plant Sizewell B is to continue producing electricity for another 20 years after a deal was reached between owner EDF and the government.

Sizewell B in Suffolk started operating in 1995 and had been due to stop generating in 2035.

EDF and the UK Government have signed the Heads of Terms for a Contract for Difference (CfD) agreement which will extend the life of the site - UK’s only pressurised water reactor which employs 900 jobs staff.

Since its commissioning in 1995 the station has produced more than 270 Terrawatt hours (TWh) of low carbon electricity - that’s enough to meet the needs of every household in Suffolk and Norfolk for more than 100 years.

The lifespan extension will now see EDF funding a major refurbishment of the nuclear power station during planned outages over the next 15 years, costing around £800m.

EDF UK CEO, Simone Rossi, said: “Global events demonstrate time and again how vital it is for the UK to secure long term, low-carbon, homegrown electricity which protects British households and businesses from market volatility. Extending the life of the plants we already have alongside building new ones is central to EDF’s strategy.”

The plant produces an average of 9TWh of electricity a year and since it started operations has delivered over £15bn of economic value. Around 900 people work at the power station which every year pays out £50m in salaries to staff.