Centrica delays UK nuclear decision until price clarity confirmed

The UK’S biggest gas and electricity supplier, Centrica is awaiting a clearer picture on the country’s power price plans before deciding whether to get involved in building new nuclear reactors.

Both Centrica (LSE:à‚ CNA) and partner EDF are reluctant to commit until the so-called strike price, the sum the government will guarantee generators get paid for nuclear energy, is confirmed.

Nuclear plant
Bloomberg reports that the price needs to be 95 pounds to 105 pounds a megawatt-hour in 2020, double the current market level, in order to be viable.

“There’s a lot of detail still to work out” on new nuclear projects, Chief Executive Officer Sam Laidlaw said on a conference call. “Whether the price is going to be sufficient for our investors. We’ve said all along that that’s a decision that we’ll make at the end of the year.”

Centrica also announced a first-half profit rise of 14 percent from a year earlier, boosted by greater residential demand and higher profits from oil and gas production.

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