BE 'can muster skills' to build nuclear plants on its own

BRITISH Energy, the East Kilbride-based nuclear power generator, is progressing its plans to build new plants in England despite uncertainty over whether it will be taken over.

Chief executive Bill Coley yesterday admitted the company did not currently have the in-house expertise to build new nuclear stations on its existing sites, but said he was confident it could "muster together" the skills required if it were to develop the plants on its own.

The UK government gave the green light to a new generation of nuclear stations south of the Border in January. British Energy, which yesterday reported a near-halving of its profits, is expected to play a key role in future development, with its six nuclear stations in England likely to be home to the next generation of plants.

Earlier this month, British Energy rejected a 765p-a-share bid from French nuclear giant EDF, and while talks are continuing there is no certainty another bid will materialise.

Yesterday, Coley said the group was pushing ahead in a bid to play as large a part as possible in the next generation of nuclear facilities, irrespective of a possible takeover.

"We aren't thinking about 'will we develop alone or with someone else?', we're thinking about maximising our involvement in new build, in whatever form that takes," he told The Scotsman.

A team of British Energy staff is currently undertaking ground and water tests at all of the firm's English sites with a view to applying for licences to operate new nuclear plants. The Scottish Government is opposed to building new nuclear facilities north of the Border.

Last week the UK government expressed doubts over a possible merger between Centrica and British Energy, saying it wanted a deal with a company with new nuclear experience.

Coley said British Energy had taken on more than 1,000 staff over the past three years, many with a view to developing and managing a new generation of nuclear plants. While the firm did not have the new-build expertise required, Coley said he was confident the skills could be found through employing staff from elsewhere or through specialist contractors.

The comments came as British Energy reported a 49 per cent fall in earnings before interest, tax, depreciation and amortisation, to £129 million in the three months to 29 June.

Profits were hit by a 17 per cent fall in output to 11.4 terawatt-hours because of plant closures at some of its nuclear sites. The fall was partly offset by increased production from its coal-burning plant at Eggborough and increased prices.

BE also revealed that the estimated full-year cost of repairing boiler units at Heysham 1 and Hartlepool had increased from £50m to £115m, owing to the "enormous complexity" of the project, with more than 1.2 million man hours dedicated so far this year.