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Britain to sell part of British Energy
AFP
LONDON
Petroleumworld.com 05 31 07Britain outlined proposals on Wednesday to sell part of its holding in British Energy, the nuclear power station operator, which could earn it 2.19 billion pounds (3.22 bilion euros, 4.33 billion dollars).
Trade and Industry Secretary Alistair Darling confirmed the plans before parliament on Wednesday and said the proceeds would go towards decomissioning costs of British Energy's eight nuclear power stations.
Darling said that 400 million shares would be sold -- slashing the government's holding to around 39 percent from approximately 64 percent.
The stake was worth about 2.19 billion pounds on Wednesday, while the government said it may sell an additional 50 million shares."Net proceeds from the sale will go to the Nuclear Liabilities Fund ... which will be used to meet the future decommissioning costs of BE's eight nuclear power stations," the Department of Trade and Industry said in a separate statement.
The announcement comes exactly one week after the government detailed its plans for meeting future energy needs, and stressed that nuclear power would likely play a key role despite opposition from green groups.
The Energy White Paper, which aims to tackle looming problems of climate change and energy security, was launched last Wednesday alongside a five-month public consultation on the use of nuclear power.
Ministers want to increase the amount of energy from low carbon sources by encouraging more nuclear power and overseeing a three-fold increase in energy generated from renewable sources -- from five to 15 percent -- by 2015.
Britain has 12 nuclear sites, many built in the 1960s and 1970s, which generate about 25 percent of the country's electricity.
British Energy is the nation's largest producer of electricity and employs about 6,000 workers.
The group returned to the stock market in 2005 after a financial restructuring. The government received its stake in return for a loan to the company that saved it from near-bankruptcy after a fall in power prices in 2003.
Finance minister and prime minister elect Gordon Brown had revealed last year that his Labour government was considering selling part of its stake.
AFP 30 1229 GMT 05 07
Copyright© 2007 AFP. All Rights Reserved.
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