EDF looks to spread UK nuclear costs

French energy giant EDF may seek more partners to share the costs of new nuclear plants in the UK and has appointed a financial adviser to consider its options.

The company plans to invest tens of billions of pounds in building two nuclear reactors at Hinkley Point in Somerset and two at Sizewell in Suffolk.

It has declined to put a price tag on the projects, but some estimates suggest the cost of the reactors has spiralled to as much as £7.5bn each.

Hinkley Point is the only proposed new UK nuclear power station anywhere near to being built. EDF is in negotiations with the Government over subsidies for the plant and plans to take a final investment decision this year.

Centrica has an option for a 20pc stake in the plants, but says it will only invest if there is a clear business case and has warned that much work remains to be done on the plans. Analysts are sceptical that it will take the option.

Ratings agencies have warned that they could downgrade both EDF and Centrica if they go ahead with the project.

Thomas Piquemal, chief financial officer for EDF, said yesterday that the company was "looking into opening up a little bit more of our capital in these projects by finding new partners".

He told reporters: "Our goal has always been and remains to be in control of the operations, to control the projects, but this does not mean that we absolutely need to control 80pc of the projects."

An EDF spokesman said it had always said it might look for new partners but confirmed a financial adviser had been appointed recently to consider the options.

Britain's nuclear ambitions were dealt a severe blow in March when German utilities RWE and E.ON withdrew from plans to build two new plants.

However a sale of their joint venture, Horizon, is understood to have attracted interest from two consortia backed by rival Chinese nuclear corporations.

EDF controls 15 of the UK's 19 existing nuclear reactors, at eight sites - all but one of which are due to shut down by 2023. Centrica owns a 20pc stake in the existing sites.

EDF's half-year results yesterday, showed a 4.6pc rise in net income to (EURO)2.8bn (£2.2bn), as demand for hydroelectric power offset nuclear outages.

 

From The Telegraph

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