Centrica Response to European Commission
Centrica PLC
13 November 2009
Centrica to complete on British Energy investment following EC
decision on sale of SPE to EDF
Centrica plc welcomes the announcement by the European Commission that
it has cleared the proposed purchase by Electricité de France SA of
Centrica's majority holding in its Belgian business, SPE, through the
purchase by the EDF Group of Segebel SA.
This announcement follows the decision by the Office of Fair Trading in
August to approve Centrica's acquisition of 20 per cent of British
Energy from EDF. Centrica’s investment in British Energy and the
acquisition of SPE by the EDF Group are inter-conditional and therefore
both transactions can now complete.
Centrica will also offtake 20 per cent of the uncontracted power from
the British Energy fleet and EDF and Centrica will form a separate 80/20
joint venture through which they will undertake the pre-development
activities for a planned nuclear new build programme, with the intention
of constructing, and operating and decommissioning four European
Pressurised Reactors. EDF will also provide Centrica with an additional
18TWh of power at market prices over five years from 2011.
The operational performance of the British Energy nuclear fleet has
improved, with 42.5TWh of power generated in the first three quarters of
the year, 42 per cent above the level in the same period of 2008.
Commenting on today's announcement, Centrica Chief Executive Sam Laidlaw
said: "This is a welcome decision and we look forward to completing the
British Energy transaction shortly. We believe nuclear energy is an
essential component in ensuring clean, secure energy for the UK and we
are proud to be part of the nuclear renaissance in the UK. The price
secured for the sale of SPE will help preserve our balance sheet
firepower as we focus on other investment opportunities that will
further underpin UK energy supply security.
Under the terms of the arrangements with EDF, the British Energy and SPE
transactions are expected to complete simultaneously on 26 November 2009.
Ends
Enquiries:
Centrica Investor Relations: 01753 494900
Centrica Media Relations: 0845 072 8001
