British Energy Has One Bidder

Despite the fact that British Energy has only raised one bid, the Government is refusing to allow any one entity to hold sole ownership. Even if that means splitting up the reactor sites, the Government still finds this preferable, since it will allow for another company to claim ownership of the two left-over reactor sites. EDF, based in France is responsible for the one bid of interest.

Centrica may be interested in taking over the remaining two sites. They hope to make a deal with the owning entity after the auction has been completed. The Government presently owns approximately one third of

British Energy. This puts it in a position to wieild it’s power to pressure other interested parties to do it’s bidding. The source of the debate? The key issue is planning control. With several upcoming power stations on the horizon, the Government wants to have it’s say as to what sites are chosen. Not one to be daunted, the Government is confident that other energy companies will express interest in buying British Energy’s sites, despite the fact that they missed the auction deadline.

Potential interest may still come from companies such as Iberdrola, RWE and possibly Suez, based in Spain, Germany and France, respectively. It’s thought that late bids may be accepted as long as they’re filed within the week. Within a relatively short period of time, British Energy’s reactors will be scheduled for decomissioning. Rebuilding takes time, so getting the real estate transactions out of the way is very desirable.

www.british-energy.com