Centrica has decided not to participate in the nuclear new build programme in the United Kingdom and launched a £500m (€580m) share repurchase programme.
In 2009, Centrica had acquired a 20% interest in EDF Energy’s eight operational nuclear power stations in the UK and also took an option for a 20% interest in the construction of new nuclear power stations at Hinkley Point and Sizewell. The acquisition was funded through a £2.2bn (€2.6bn) Rights Issue, completed in 2008, part of which provided financing for the investment in new nuclear. Having taken the decision not to proceed with the new nuclear investment, the Group will launch a £500m (€580m) share repurchase programme, to return surplus capital to shareholders, which will be conducted over the next 12 months.
With pre-development expenditure on the project approaching the agreed £1bn (€1.16bn) cap, Centrica’s decision not to proceed follows a detailed appraisal of the project. While there has been progress in a number of key project areas, particularly design and planning, there remains uncertainty about overall project costs and the construction schedule. Centrica’s 20% interest in the eight existing nuclear power stations in the UK is unaffected by this decision.
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