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British Energy is kick-starting talks on the construction of a new generation of nuclear power plants after its profits almost doubled in the past nine months.
Bill Coley, the chief executive, revealed today that Britain’s biggest energy producer was inviting potential partners to submit proposals for new facilities, including possible joint ventures.
The move precedes the publication of the Government’s eagerly awaited Energy White Paper in the spring.
The review is expected to say that nuclear power has a vital role to play in the future despite fierce opposition from environmental groups.
British Energy is understood to have held talks with EDF Energy, of France, and RWE, of Germany.
Mr Coley said: "The company’s intent is to develop a position at the heart of new generation activity.
“Potential partners will be asked to indicate the nature and scale of their interest and how they wish to work with British Energy in developing, building and operating new nuclear stations and/or their interest in electrical output.”
Quarterly results indicated today that production across British Energy plunged 11 per cent in the nine months to December 31 after the disruption caused by discovery of cracked pipes at three plants in the autumn.
But surging electricity prices meant that operating profits still soared 80 per cent to £626 million from £314 million.
Revenue rose to £2.1 billion from £1.7 billion.
The company gave warning in October that cracked pipes and leaks at its sites in Hartlepool, Hinkley Point and Hunterston meant that annual production targets were out of reach, causing its shares to plunge nearly 24 per cent.
Mr Coley said today that plant investment over the next financial year would be towards of the higher end of its £250 million to £300 million range.
The two units hit by a shutdown at Hinkley Point, Somerset, are expected to return to service next month, although further maintenance work may delay until April the restart of production at Hunterston B.
The shares added 2p to 426p.
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