NEWS

British Energy profits suffer a sharp plunge

Nuclear power firm British Energy yesterday revealed that its earnings for the first half of this year have halved after power station shutdowns and lower electricity output than last year.

The power firm, which operates eight nuclear power stations around the country, including Sizewell in Suffolk and the Eggborough coal-powered station, said pre-tax earnings in the six months to September fell to £257m from £511m in the first half of 2007.

British Energy said that the results reflected ongoing repairs at its stations at Hartlepool and Heysham and that electricity output had fallen from 30.7 terrawatt hours (TWh) in the first half of 2007 to 22.7 TWh this year.

But chief executive Bill Coley said: "There is the opportunity for improved output and performance in the second half of 2008/09 as we expect to return five reactors to service before the end of December 2008. Delivering the safe return to service of Hartlepool and Heysham 1 is the immediate priority. I am pleased with the dedication and ingenuity shown by the British Energy team and our contract partners on this challenging project."

The results follow the announcement in September that British Energy had reached an agreement with French power and utilities giant EDF over a takeover.

The deal, backed by the British government, is likely to see plans emerge in the coming months for a new generation of nuclear power stations.

As the EDP has reported, EDF favour building a twin-reactor plant at Sizewell. British Energy is conducting "pre-planning" work on the site and three others around the country. In a statement to the stock exchange yesterday, British Energy said: "We are continuing to progress nuclear new build activities for our potential development sites at Hinkley Point, Sizewell, Bradwell and Dungeness.

"These activities include undertaking detailed environmental, socio-economic and other survey activities.

"We are also proceeding with public consultation and engagement activities and have commenced a series of public meetings with the communities around our sites, including Hinkley Point, where British Energy and EDF have adjoining land interests."

Courtesy of EDP