Aging reactors pull British Energy's profit down

19 November 2008

Aging nuclear reactors in the UK has seen profits at British Energy plunge in the first half as output decreased drastically by 30 per cent and production fell by almost 50 per cent from last year's levels.

Nuclear power station operator British Energy with its eight nuclear power stations was generating around 14 per cent of the UK's electricity but, due to power station shutdowns for maintenance and lower electricity output, it posted a 50 per cent decline in profits.

The company's pretax earnings in the first six months to 28 September fell to 257 million pounds ($386.7 million) from 511 million pounds a year ago.

The company sounded optimistic for the second half and hoped profits would return in the coming winter months when demand for electricity is at its highest.

Releasing the figures for the last time, British Energy blamed its disappointing results on power station shutdowns, continuous maintenance programme and lower electricity output from its eight nuclear plants and one coal-fired power station.

Its Hartlepool and Heysham I nuclear stations have been closed for more than a year and the cost of repairing corroded wires and cooling systems would be around £125 million in this financial year, which is more than the previous estimate of £50 million made in January. The cost could still escalate if plans to bring the stations back to generating power did not work.