Small Delays For UK Nuclear Could Have Wider Impact - Centrica

28th Jul 2010 14:59

LONDON (Dow Jones)--Even small delays to licensing, planning and design approvals for new nuclear power stations in the U.K. could lead to much broader complications that would hinder the country's ability to meet power generation and climate change targets, the head of U.K. utility Centrica PLC (CNA.LN) said Wednesday. Electricite de France SA (EDF.FR)--along with Centrica, which has a 20% stake in the French utility's nuclear venture in the U.K.--has set a target date of 2018 to have the U.K.'s first new nuclear power plant since 1995 operational. "There's a lot to be done to make this happen," Centrica Chief Executive Sam Laidlaw said at a press conference following the company's first-half results. Before new nuclear can go ahead, government and industry have to agree on a carbon price floor to stimulate investment, complete reform of the electricity market, resolve planning issues and approvals, license the new reactor technology and agree a funding plan for decommissioning. EDF and Centrica are spearheading the U.K.'s nuclear revival as the country strives to meet climate change targets, while still keeping the lights on. "The critical thing is to get to the final investment decision by the end of next year," Laidlaw told a news briefing. "The consequence of not meeting that date would actually be potentially losing our place in the queue for a lot of the large forgings and the other bits of critical long lead-time items. Then it doesn't become a month-by-month slippage, but it becomes potentially a much more significant slippage which then has consequences for energy security, reserve margins and meeting our climate change objectives," he added. Company Web site: http://www.centrica.com -By Selina Williams, Dow Jones Newswires; +44 207 842 9262; [email protected] (END) Dow Jones Newswires July 28, 2010 09:59 ET (13:59 GMT)