Robin Pagnamenta, Energy and Environment Editor
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The Government said yesterday that it would not stand in the way of a foreign-led takeover of British Energy on strategic grounds.
As shares in British Energy, which is 35 per cent owned by the Government, soared yesterday amid continued speculation about a possible £10 billion takeover approach, a spokeswoman for the Department for Business, Enterprise and Regulatory Reform said that it was “not UK energy policy to encourage national champions”.
“We are used to foreign ownership of energy suppliers in the UK. We are relaxed about it,” she said.
EDF, of France, and RWE, of Germany, have discussed the idea of a joint bid with Britain’s Centrica, the owner of British Gas, whose shares also rose sharply yesterday. Other companies, including Sweden’s Vaten-fall, France’s Suez and Spain’s Iberdrola, the owner of Scottish Power, are also interested in the company.
British Energy generates 20 per cent of the UK’s electricity and is a key player in the push to build new reactors through its ownership of the most attractive sites. Advisers close to the discussions said yesterday that no firm date had yet been given for bids and it could be some time before a firm offer is made.
The Government is willing to consider a sale of all or part of its stake in British Energy, but is thought to be concerned about too much control over the future of UK nuclear power being concentrated in a few companies.
British Energy had been in discussion with several power firms about partnerships or joint ventures to build new reactors, after the Government gave the go-ahead for new plants in January. British Energy runs most of the UK’s nuclear power stations, all but one of which will be closed by 2020, and supplies large industrial consumers. It also owns land that has been earmarked for new nuclear sites.
The Government’s Shareholder Executive has appointed UBS to handle the sale of its 35.2 per cent stake in British Energy.
The Government, which believes that each new nuclear station will cost about £2.8 billion to build, has emphasised that its principal concern is to ensure that new nuclear stations are built swiftly.
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Yet another small minded policy. The mistakes of this Government mount up daily and the problems of the future will be on our shoulders for decades to come.
Roger, Surrey,
Is this a covert policy by our gov't to sell all the infrastructure of Britain to foreign hands ?
Ian Payne, WALSALL,
The governments energy policy is in tatters!!!!
We are paying more than our competitors in Europe for Electricity and Gas as a result. This is another example of lack of forward thinking by the government and Mr Wicks. Bankrupt governmenet both in terms of cash and ideas on how to run a mixed energy market.
Henrymen, Manchester ,
I am surprsed that Britain has anaything left to sell, why not just sell the whole of the UK to the highest bidder?
Bill, Dundee, UK
Can you imaging the French or German governments saying the same?
By the time NuLab get kicked out there will be nothing left to flog But at least all the ministers involved will be able to retire to their holiday homes to negotiate their book deals and directorships. And god knows what fees UBS will be getting.
paul, sheffiel;d, UK
I suppose it doesn't really matter whether a major release of radioactivity is in continental europe or the british isles. Equally, the UK track record is not that clever on nuclear power safety.
Even so, there was always something re-assuring that our nuclear industry was state owned and not subject to the cost- and corner-cutting that is inevitable in the private sector. And at least it was the British state that owned it.
Now, I suppose, we would be just as safe getting Iran to build some reactors for us.
Mike Poulsen, Reading, Berkshire
No doubt the "on-message" new labour apparachik who works inside the "Department for Business, Enterprise and Regulatory Reform " - made the statement that the Gordon Brown government - is relaxed about everything when it comes to serving the interests of BIG business, simply because the buffoons who run this country no longer have our national strategic interests on their radar screen. And of course it had to employ the services of a merchant bank which has recently written off one of the largest losses in global banking history. Nice one! Clearly what we all now need - is more lessons in Britishness!
Roy Finchett, LONDON, UK
Swedenâs Vaten-fall,......this firm has a super record in Germany on nuclear power disasters and a real ability to obscure the truth when mishaps occur. Inspiring !
No doubt Britain would let Pakistan buy its nuclear industry so A Q Khan can get back in business
TomTom, Leeds, England
not UK energy policy to encourage national champions - dont you love it. Just remove the word "energy" and you have the UK approach to just about everything. If there's a quid in it, the government or the city will sell it. And then they seem surprised when the new overseas owners fail to invest in it - just look at the Ferrovial / BAA / Heathrow fiasco.
Stephen Hunt, Sydney, Australia
âWe are used to foreign ownership of energy suppliers in the UK. We are relaxed about it,â she said."
As a government employee, with the prospect of gold plated pension to look forward to she may may be able to afford extortionate energy prices. Those unfortunate enough to depend on the largesse a of government state pension in their old age are not relaxed about ever increasing prices.
Every year we pay more for energy than the European countries where the power companies are based. Every summer they buy gas from Brtain at rock bottom prices and then refuse to supply Britain when we need extra supplies in the winter.
None of this appears to worry the government. Thereagain, very little does seem to worry this government.
Bernard, Edinburgh, Scotland