EDF and British Energy deal moves closer

The Government’s new nuclear programme moved a step closer to reality with news this week that EDF and British Energy are close to striking a deal. But civil engineers warned this week that the programme was progressing too slowly and in danger of losing out in the queue for resources and skills to overseas competitors.

French energy group EDF had a £12bn offer rejected by British Energy (BE) shareholders last month but industry sources say talks are back on and close to a successful conclusion. One source told CJ: “There is some tactical manoeuvring going on but it looks like a deal is about to be struck.”

EDF wants to develop at least five nuclear plants on British Energy sites. However the deal could face further delays as not all BE shareholders are happy with the prospective deal.

Major shareholder M&G is said to be considering an alternative proposal from British group Centrica. An M&G spokeswoman said the company had held “constructive talks” about an alternative deal with Centrica.

British Energy chief executive Bill Coley said there was no deadline to the talks. "We can carry on as long as we need to carry on," he said at the recent World Nuclear Association's annual nuclear symposium in London .

However the Civil Engineering Contractors’ Association (CECA) called for greater urgency. It warned the Government, which owns 35% of BE, to speed up the programme or risk being pushed to the back of the queue for resources by other overseas nuclear programmes.

A CECA spokesman said: “The Government needs to push this on. They agreed sometime ago that new nuclear power is the best option but they are in danger of losing out to China, which is planning a massive programme, if they do not speed up this programme.

"You can’t just ask for seven nuclear power stations to be built and expect it to happen overnight. We need some decisions so that the construction industry can prepare to deliver the necessary skills and resources.”