Centrica buys stake in E.D.F.Â’s British Energy


NFPA 70E Training - 2027 Edition

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$199
Coupon Price:
$149
Reserve Your Seat Today
Centrica, the largest British energy company, will buy a 20 percent stake in the British nuclear power unit of Électricité de France, the two companies said, as they form a partnership to build the next generation of power stations.

The companies said Centrica, which operates British Gas, will pay £2.3 billion, or about $3.5 billion, for one-fifth of British Energy, which E.D.F. acquired in January. The companies said the price represents a discount of about 6 percent for the stake compared to the price of £12.2 billion that E.D.F., Europe’s largest electrical utility, paid for British Energy.

As part of the deal, E.D.F. will acquire Centrica’s 51 percent stake in the Belgian utility S.P.E. for £1.2 billion. As a result, the cash payment by Centrica is only £1.1 billion.

British Energy operates eight nuclear power stations in Britain. E.D.F. and Centrica said they would also form a joint venture, with E.D.F. holding 80 percent and Centrica the rest, to build four new nuclear power stations there.

The new plants will be European Pressurized Reactors, a type of reactor designed and built by Areva, the French engineering giant. The new reactors are meant to be safer than previous models, incorporating features to prevent core meltdown and protect against exceptional hazards, such as airplane crashes and earthquakes.

Pierre Gadonneix, the E.D.F. chief executive, said in a statement that the deal was a way for Centrica and E.D.F. “to take part in the relaunch of nuclear energy in the United Kingdom.” The French state holds about an 85 percent stake in E.D.F.

The discounted price suggests that the value of British Energy has fallen as electricity prices decline in the face of a weakening economy. While that raises the possibility that E.D.F. will have to write off part of its purchase price, Mr. Gadonneix said in a conference call that the discount was “quasi symbolic.”

The companies agreed that E.D.F. would operate British Energy, while Centrica will have representation on the board. They will share the power output from British Energy proportional to their ownership, and Centrica will receive 18 terawatt hours more of power at market prices over five years beginning in 2011.

In the statement, Roger Carr, the Centrica chairman, said the deal was “good value for Centrica shareholders, improves the strategic balance of our business and further underpins our green energy credentials.” He also suggested that Centrica was looking for acquisitions in Britain and North America.

The deal is contingent on regulatory approval, and Centrica shareholders will have to back it at an extraordinary general meeting next month.

Shares of Centrica rose 3.6 percent in London early trading, while shares of E.D.F. fell 2.6 percent.

Related News

Canada Extends Net-Zero Target to 2050

Canada Clean Electricity Regulations 2050 balance net-zero goals with grid reliability and affordability, setting emissions…
View more

America’s Electricity is Safe From the Coronavirus—for Now

US Grid Pandemic Response coordinates control rooms, grid operators, and critical infrastructure, leveraging hydroelectric plants,…
View more

Electricity prices may go up by 15 per cent

Jersey Electricity Standby Charge proposes a grid-backup fee for commercial self-generators of renewable energy, with…
View more

Coronavirus could stall a third of new U.S. utility solar this year: report

U.S. Utility-Scale Solar Delays driven by the coronavirus pandemic threaten construction timelines, supply chains, and…
View more

Germany extends nuclear power amid energy crisis

Germany Nuclear Power Extension keeps Isar 2, Neckarwestheim 2, and Emsland running as Olaf Scholz…
View more

Electricity prices spike in Alberta

Alberta electricity price spike drives 25% CPI surge amid heatwave demand, coal-to-gas conversions, hydro shortfalls,…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.