Centrica withdraws from new UK nuclear project

• 11 years ago (2013-02-08)
• Junior Isles

Europe 1089 Nuclear 659

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Centrica has decided to withdraw its proposal from the UK's nuclear re-building program, because of increasing costs and delays, the company has said in a statement.

"With pre-development expenditure on the project approaching the agreed £1bn cap, Centrica's decision not to proceed follows a detailed appraisal of the project.”

"While there has been progress in a number of key project areas, particularly design and planning, there remains uncertainty about overall project costs and the construction schedule. Centrica's 20 per cent share of the pre-development expenditure will be written off as an exceptional cost in the group's 2012 results."

Centrica had the option of taking a 20 per cent stake in four planned reactors – two at Hinkley Point, Somerset and two at Sizewell, Suffolk – in a partnership with French state-owned utility EDF.

Centrica said "the project costs in new nuclear have increased and the construction timetable has extended".

Centrica's 20 per cent interest in the eight existing nuclear power stations in the UK is unaffected by the decision.

The nuclear plants being proposed by EDF would be the first of such facilities to be built in the UK since 1995. With Centrica’s withdrawal, the companies behind the projects are likely to have to find alternative backers.

EDF has previously floated discussions with Chinese state-owned nuclear company CGNPC about joining the partnership to build the next generation of UK nuclear plants.

A Department of Energy and Climate Change spokesman said: "We are determined to make the UK a leading global destination for investment in new nuclear, which will play a key role in our future energy mix.

"We welcome EDF Energy's continued commitment and determination to take forward the Hinkley Point C project. The decision by Centrica reflects the company's investment priorities and is not a reflection on UK Government policy.

"The recent purchase of Horizon Nuclear Power by Hitachi is clear evidence of the attractiveness of the new nuclear market in the UK."