Centrica blames construction costs on nuclear pull-out

Grant Prior 11 years ago
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Centrica has pulled-out of the UK’s nuclear building programme blaming an increase in construction costs and timescales.

Centrica had an option for a 20% interest in the construction of new nuclear power stations at Hinkley Point and Sizewell.

But the owner of British Gas has decided not to go-ahead following worries over building costs.

Centrica said: “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.”

Sam Laidlaw, Chief Executive of Centrica, said: We believe that nuclear generation has a valuable role to play in a balanced UK energy mix. Centrica and EDF continue to enjoy a successful partnership in existing nuclear.

“However, since our initial investment, the anticipated project costs in new nuclear have increased and the construction timetable has extended by a number of years.

“These factors, in particular the lengthening time frame for a return on the capital invested in a project of this scale, have led us to conclude that participation is not right for Centrica and our shareholders.”

Centrica’s 20% interest in the eight existing nuclear power stations in the UK is unaffected by this decision.

 

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