Government got "good price" for stake in British Energy

THE Government received a "good price" when it sold its stake in nuclear power firm British Energy to French company EDF Energy for £4.4 billion, an official report said today.

By The Newsroom

Published 22nd Jan 2010, 08:32 BST

But the National Audit Office added it was too early to say whether the sale would enable the Government to achieve its objective of ensuring nuclear operators were able to build new nuclear power stations from the earliest possible date and with no public subsidy.

The sale of the 36% stake a year ago went through when energy prices were at a peak, said the report.

Amyas Morse, head of the NAO said: "The Government sold its stake in British Energy when energy prices were at a peak, and got a good price.

The biggest priority for the Government was, however, to ensure new nuclear power stations could be built from the earliest possible date and with no public subsidy.

"Whether it will achieve this remains to be seen. The Department of Energy and Climate Change now needs to make real progress on its contingency plans should EDF be unwilling to build new nuclear power stations."