High prices offset British Energy problems

EDINBURGH, SCOTLAND - British Energy said that cracked pipe problems at two of its nuclear power stations would have a significant effect on output for the year but that higher power prices had helped boost first-half earnings.

The generator, which runs eight nuclear power stations and one coal plant across Britain, including Torness power station in East Lothian, reported pre-tax profits for the six months to October 1 had lifted to GBP 329 million - compared to GBP 81 million a year before.

The Livingston-headquartered group said it had been helped by higher realised power prices of GBP 35.7 per megawatt hour, up GBP 10.7 from the same period the previous year.

The firm - which supplies about a fifth of Britain's energy - said boiler problems at its at Hunterston B and Hinkley Point B plants would have an impact on output for this financial year.

It said work was being carried out at both Hunterston in Ayrshire and Hinkley in Somerset to return the units to service at around 70 per cent of full capacity.

It added that a significant non-radioactive leak at its Hartlepool plant would be repaired and the plant returned to full service by December.

Bill Coley, chief executive of British Energy, said: "The first six months of the year 2006/07 have shown an improvement in financial performance compared to the first half last year largely due to higher achieved electricity prices."