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: 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.
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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