Standard content for Members only
To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.
If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.
Centrica has announced that it is pulling out of plans to build new nuclear power stations in Britain.
The decision means the company will not take up its option of a 20 per cent stake in any new nuclear ventures with EDF Energy, including proposed new reactors at Hinkley Point and Sizewell.
Sam Laidlaw, chief executive of Centrica, said the anticipated costs of building four new European pressurised nuclear reactors were approaching the agreed £1 billion cap.
He added: “These factors, in particular the lengthening time frame for a return on the capital invested in a project of this scale, have led us to conclude that participation is not right for Centrica and our shareholders.”
Having taken the decision not to proceed with the new nuclear investment, Centrica will launch a £500 million share repurchase programme, to return surplus capital to shareholders, which will be conducted over the next 12 months.
Centrica’s exit clears the way for China Guangdong Nuclear Power Holding Company (CGNPC) to invest in the new generation of nuclear plant in the UK alongside EDF Energy.
Investment from CGNPC would give the nuclear project the necessary funding for it to continue, and it would ease developing pressures on EDF Energy, who are struggling with difficult market conditions in France.
Centrica’s 20% interest in the eight existing nuclear power stations in the UK is unaffected by this decision.
Please login or Register to leave a comment.