French utility GDF-Suez circles UK nuclear firms

French energy giant GDF-Suez is circling the UK's £40bn new nuclear market.

It is tipped to make a bid for either Centrica or Scottish and Southern Energy (SSE) as part of its plans to build new nuclear power stations in the UK.

The French firm is already in talks with Spanish energy giant Iberdrola about joining its recently formed joint venture with Scottish and Southern Energy.

Sources say the firm is keen to extend its customer base in the UK. Buying either Centrica or SSE would answer that need.

A source said: "The word is GDF-Suez plans to buy SSE or Centrica to increase its UK customer base which has only industrial clients at the moment.”

However GDF-Suez is keeping its options open.

Industry sources say it is also in talks with German utility company RWE and Swedish energy firm Vattenfall about a possible UK joint venture. Iberdrola is playing the same game by holding parallel talks with Vatenfall.

The news underlines the growing interest of foreign utilities in the UK’s new nuclear market.

Iberdrola intends to build at least three new nuclear stations in the UK. However bringing either Vattenfall or GDF Suez on board could swell that number. Iberdrola made clear it was keen to add another member to the team when it announced its jv with SSE last month.

RWE’s possible involvement with GDF-Suez has raised a few industry eyebrows. The German firm is already in a joint venture with E.ON to build at least four nuclear plants in the UK. RWE declined to discuss whether it was in talks GDF-Suez to form a second jv in the UK. However the spokesman added the firm would not turn away any opportunities in the UK new nuclear market.

Iberdrola declined to comment on which firms it is talking to.

Vattenfall were unavailable for comment as CJ went to press.