Nuclear plant closures hit British Energy finances

Troubled nuclear power group British Energy warned today of a further blow to its finances because of delays returning a major plant to service.

Two reactors at Heysham 1, Lancashire, are now expected back online at the end of this month – later than the mid-November target announced previously.

Sizewell B in Suffolk, which was also shut down last month after the discovery of an “anomaly”, is set to return in the next few days.

British Energy, which announced a life-saving financial restructuring last month, said the loss of output was now likely to be in the region of 1.1 to 1.4 terrawatt hours of power. It had previously estimated 0.8 terrawatt hours.

Analysts expect the financial impact on the company to be in the region of £50m (€72m), rather than the £30m (€43m) predicted earlier by the company.

East Lothian-based British Energy added: “The delayed return of Sizewell B and Heysham 1 will have a further adverse impact on the group’s cash position.”

The company added that it had 2 terrawatt hours left of the 5 terrawatt hours of power set aside for unplanned outages in the year to March 31.

At Heysham 1, both reactors were shut down on October 28 following the failure of a sea water cooling pipe.

The company added today: “Based on the inspection programme, which is still continuing, and the scope of the work identified to date, it is now expected that both reactors will return to service towards the end of November.”