Centrica in British Energy deal

May 12th, 2009

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Energy giant Centrica, owner of British Gas, has agreed a deal with french company EDF Energy to take control of 20% of British Energy.

Last year Centrica agreed a fee of about £3.1 billion for 25% of British Energy. They have now confirmed the new re-negotiated deal, £2.3 billion for a 20% stake.

EDF bought British Energy, a company that runs 12 nuclear power plants in the UK, last year for £12.5 billion. Centrica, therefore have managed to get a 6% discount on the price that EDF payed last year.

British Energy’s eight existing power stations currently supply about 14% of the UK’s domestic energy supply.

Centrica and EDF now plan to build an additional 4 power plants on existing sites, as part of the government’s plan to create a new generation of nuclear power plants, intended to reduce carbon emissions.