Loose connections

4 Aug 2008 By Mike Prest

The collapse of the deal between EDF and British Energy is a symptom of a deeper malaise. UK energy policy is becoming increasingly dysfunctional. That s primarily because the country has drifted into a publicprivate entanglement which hampers longterm policy making.

This content is for Subscribers only

Context News

The board of British Energy, which owns most of the UK's nuclear power stations, last week rejected a bid from EDF, the French governmentcontrolled utility. A small number of British Energy shareholders believed that the bid, which valued British Energy at about £12bn, was too low.

The UK government hoped that a takeover of British Energy by EDF would revitalise the country's nuclear power programme. The government is entitled to 35% of British Energy's net cash flow, which coverts into a 35% equity holding if a bid crystalises.

Email a friend

Please complete the form below.

Required fields *