MPs object to EDF takeover of British Energy
Sunday, July 27, 2008 at 8:25PM
Uranium Stocks in Other
EDF Logo 28 July 2008

The proposed takeover of British Energy by the French company EDF is not yet a done deal. EDF’s bid which is in the order of £11 billion has ran into a number of problems including some voiced by British Members of Parliament.

A report compiled by the Commons Business and Enterprise Committee, warns that:

“The expected takeover threatened to reduce significantly price transparency in Britain's electricity market and to create an overly dominant player that would add to upward pressure on prices paid by consumers.”

Peter Luff a Conservative MP and the committee's chairman, has said the deal would restrict competition in an already tightly held market with only half a dozen big suppliers. The report goes on to say that investment must not come at the expense of competition or market transparency.

British Energy has eight nuclear power plants and one coal-fired power plant, which produce around 16% of Britain's electricity. However the government regards these nuclear power plants as key to the future as they are the sites that the new plants will be built on.

Someone needs to alert them to the fact that it will take about ten years to construct one of these new nuclear plants and that the old ones will be de-commissioned in 2015, so this programme is already late. Any further delays to the process will only exasperate the situation and increase the possibilities of rotational blackouts in the United Kingdom. We can only hope that the rules appertaining to ‘fair play’ don’t manifest themselves into no progress whatsoever as the various interest groups protect their rights.

Have a good one.

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