Start building new atomic stations now, urges British Energy chief

• Claims that nuclear power can recharge the economy• Plant repairs contribute to 50% cut in firm's profits
Terry Macalister

The Guardian, Wednesday November 19 2008

The country should press ahead with building a new generation of atomic power stations to suck in investment and create jobs, British Energy said yesterday.
The company, which runs most of Britain's fleet of reactors and which reported a 50% slump in profits yesterday, has held talks with local communities around four possible sites.
Bill Coley, the chief executive, said it was important to halt the discussions at some stage and start the serious planning and building phase. "I think it's really important that the country gets on with this. We have a very old generating fleet and the UK needs new capacity.
"We can't meet our climate-change obligations without nuclear. It's just got to be done," he said.
British Energy expects to be at the forefront of a new-build programme with EDF of France, which has tabled a takeover offer for the British firm that has been agreed by its board. Coley said he was waiting for the green light from his shareholders and the European competition authorities.
The British Energy chief defended the £12.4bn deal, which came under renewed attack from some in the City, with the brokerage Evolution Securities saying that it significantly undervalued the power company. "We continue to consider the action by the British government in forcing the bid through as wrongheaded - but as we say, the offer is a done deal," said Lakis Athanasiou, an analyst at Evolution.
The United Nations environment programme called recently for a green new deal that would kickstart a faltering global economy by switching public money from carbon-intensive generation to clean-energy projects.
Coley said nuclear new-build would offer similar benefits. "It would bring a tremendous amount of investment into the country, create hundreds of jobs and would be great business for the domestic supply chain in this country," he said.
British Energy, which operates 15 reactors at eight nuclear power stations, posted a 49.7% fall in first-half earnings yesterday, but said it hoped for a better second half.
The group's pre-tax earnings before interest, depreciation and amortisation in the six months to September 28 fell to £257m from £511m a year ago, owing to power station shutdowns and lower electricity output. It said it had put aside £2m to meet possible liabilities from using the failed investment bank Lehman Brothers as a counter party.
The company has seven reactors out of action due to unexpected or routine repairs but Coley said five would return before the end of December.
The group said there was potential to improve its output and performance in the remainder of the year. "We're looking forward to a good second half," he said.