Nuclear project fallout threatened


THE Government is set for a highstakes power struggle with British Energy over rights to build new nuclear stations.

British Energy, the UK biggest electricity generator and operator of the country's current nuclear fleet, says it will fight tooth and nail to defend its ownership rights to the adjacent land where the next generation of atomic reactors are set to be built.

That could spark a massive legal battle with Government and Europe's power giants that New Labour wants to come in as the UK's new nuclear operators.

British Energy, the FTSE 100 company that produces 20% of the nation's power, is in effect barred from running new nuclear build because of its restricted financial status after the Government bailed it out three years ago.

It is believed rival power companies EDF of France and E.On and RWE of Germany want the Government to requisition sites.

But a British Energy spokesman insisted: 'The sites are owned by BE. That is the legal position.'

Chief executive Bill Coley recently briefed City analysts that he would forcibly defend British Energy's patch. 'I am here to protect the interest of shareholders and those sites are assets of the shareholders,' he said. 'I will vigorously defend the shareholders' interest in those sites. We do own the land.'

What has muddied the legal position is that the Government in effect has 65% shadow ownership of British Energy through the restructuring agreement which saved the company but also secured the Treasury's rights to up to two-thirds of its future cashflows.

Nuclear project fallout threatened

Search within