UK energy company Centrica, owner of British Gas, has announced its 'decision not to participate in UK nuclear new build' through its joint venture with EDF Energy. The company, which took a 20% interest in the construction of new nuclear power stations at Hinkley Point and Sizewell in 2009, blamed "uncertainty" over costs and schedule.
Centrica noted that there has been progress in a number of key project areas, particularly design and planning, but said that "there remains uncertainty about overall project costs and the construction schedule". It also said that pre-development expenditure on the project was approaching the agreed GBP 1 billion cap.
“Since our initial investment, the anticipated project costs in new nuclear have increased and the construction timetable has extended by a number of years," said Sam Laidlaw, chief executive of Centrica.
“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."
EDF Energy said that it was prepared for the decision and that momentum behind its new nuclear project at Hinkley Point C in Somerset "remains strong." The project is now "shovel-ready," it said.
Centrica's 20% interest in the eight existing nuclear power stations in the UK remains unaffected by this decision.
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