The owner of Scottish Power has pulled out of a multibillion-pound plan to build atomic reactors, dealing a blow to Britain’s faltering nuclear renaissance.
The decision by Iberdrola, the Spanish energy giant, means there is now a question mark over two of the three groups that planned plants. Ministers hoped the trio would build a dozen reactors generating roughly a fifth of Britain’s power over the next 20 years.
The government's energy policy took another blow on Friday as major energy provider RWE reviewed whether to scale down or abandon its UK nuclear programme.
The German-owned utility, which owns the npower supply business, has started an internal probe of its plans to construct two possible atomic power stations at Wylfa in Wales and Oldbury in Gloucestershire.
Britain’s “big six” energy companies will this week warn Chris Huhne, secretary of state for energy, that the government’s proposed “floor price” for carbon emission permits is not enough of an incentive for them to invest in new nuclear power stations.
Executives from the companies, including Centrica, EDF Energy and Scottish Power, now owned by Iberdrola, are due to make their views clear at a dinner with Mr Huhne on Wednesday.
