EdF plans four new UK nuclear reactors
- Published: 24 September 2008 16:54
- Last Updated: 24 September 2008 16:54
- Reader Responses
Further details of EdF's planned £12.5bn takeover of British Energy emerged today as the French energy giant signaled its intention to build four new nuclear reactors in the UK, with the first operational by 2017.
EdF had a new bid for British Energy, which runs eight of the UK's ten operational nuclear power plants, accepted by its board, and is expected to sign the deal on Thursday morning.
A statement by the Government, which holds a 35% stake in British Energy, welcomed the deal and revealed EdF's plans to build four new reactors with total generating capacity of 6.4GW of electricity.
EdF wants to construct and operate two reactors each at Hinkley Point in Somerset and Sizewell in Suffolk, both sites of existing British Energy reactors, and has said that under its plans the first new reactor could be operational by the end of 2017.
"New nuclear is becoming a reality," said Prime Minister Gordon Brown.
"This deal is good value for the taxpayer and a significant step towards the construction of a new generation of nuclear stations to power the country."
The takeover was also welcomed by the Conservative Party, although shadow business secretary Alan Duncan questioned whether the deal would represent value for taxpayers' money in the long term.
"We've seen the corporate details – but what did the Government get in return for selling its 35% stake?" asked Duncan.
"Its shareholding was a powerful lever over nuclear policy and they've sold it to another country's nationalised industry. What did they demand in return? Have they received a cast-iron guarantee backed up by the French Government that EdF will not now come to us to demand subsidies of any sort? Have they secured a French national guarantee that all decommissioning costs will be covered?
"Or have they just sold their stake, taken the cash and said 'Merci'?"
