Centrica finally agrees terms for British Energy stake
After months of prolonged negotiations it has been revealed that Centrica will pay EDF around £3.1 billion for a 25% share in British Energy. British Energy was the recipient of a significant takeover battle just a few months ago when the UK government became heavily involved in the eventual outcome. A side deal was originally agreed with Centrica in principle although it has taken some time to arrive at the exact details and the cost of the investment.
While there is no doubt that the nuclear industry will play a significant part in the generation of future UK energy there is a debate as to how much UK taxpayers will be expected to invest. The sale of British Energy, which was part-owned by the UK government, included a significant commitment from the UK government with regards to the use of nuclear power in the UK. It will be interesting to see exactly how the Centrica deal will be structured as there was some concern about the level of energy unit prices in the UK at the time of the original discussions.
In the last couple of years there has been significant investment in alternative energy sources in the UK as the more traditional energy providers continue to struggle. Unfortunately, so far there has been no respite UK energy customers who have seen their bills increase substantially over the last 12 months.
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