British Energy warns of output problems

Power generator British Energy warned today that output problems would continue to plague the company while repair work is carried out on key nuclear reactors.

The company is inspecting four reactors at Hunterston B, in Ayrshire, and Hinkley Point B, in Somerset, after discovering cracks inside boiler tubes.

British Energy said in August it was unlikely to meet its output target of 63 terrawatt hours (TWh) in the current financial year as stoppages dogged the firm.

However, it admitted today that even after work is finished, the units would only run at 70% of full capacity until a long-term boiler management programme is established.

The firm said it was “prudent to assume” that would continue until March 2008 and added that running the four units at 70% capacity would hit annual output by around 5TWh.

Despite the bleak picture, British Energy posted improved profits today as higher electricity prices offset a poor output performance.

It said pre-tax profits for the six months to October 1 lifted to £329m (€485m) compared to the £81m (€119.4m) banked during the same period last year.