British Energy turns up heat in bid to host new reactors

British Energy has told rivals wanting to use its sites to build a new generation of nuclear reactors to submit expressions of interest by the end of the month.

The Government is set to publish its long-delayed energy White Paper in the middle of next month. It is expected to sanction new reactors to replace the UK's ageing plants.

British Energy, in which the Government has a 65 per cent stake, owns the sites which are most suitable for development, making them hugely valuable.

Once the Government gives the green light, British Energy wants to press ahead as quickly as possible with plans to be part of a new- build programme.

It has been in informal talks with European rivals EDF, RWE and E.ON over the past six months about forming consortiums to carry out the work. So far, no tie-ups have been formed, but British Energy has told the trio to come up with concrete plans for how they would use the sites - and what they propose to give the nuclear generator in return for providing the land.

The Government could force British Energy to sell the sites to the highest bidder. The preferred option for the company, which the Government rescued from collapse five years ago, is for it to be given part-ownership of the new reactors in return for access to the sites. The generator would also like a role in operating the reactors.

Uncertainty continues to cloud the Government's energy policy, despite mounting concerns over climate change.

The credibility of its energy review took a hit earlier this year when the High Court ruled that the Government had not properly consulted on proposals for the future of the nuclear industry, despite publicly announcing its preference for constructing more reactors.

As a result, it will have to hold separate consultations on nuclear waste and the economics of new nuclear builds. These will be launched when the White Paper is published next month.

Copyright 2007 Independent Newspapers UK Limited. All rights owned or operated by The Independent.
Provided by ProQuest Information and Learning Company. All rights Reserved.