The Glorious Ninth: Open Season on British Energy

Raised yesterday in comments by our Hon Member Mr BQ, EDF has opened the bidding on British Energy.

This is all highly political, and difficult to read in detail: but by way of marking the spectators’ cards we can list several solid principles:

· BE’s main value is as a collection of sites where it would be easiest to build new nucs

· Otherwise it is a gigantic liability

· EDF is an even bigger liability, but Sarkozy is playing double-or-quits with the whole EU

· People will always need electricity

· There isn’t much that can’t be done with (a) a guaranteed income stream and (b) an indemnity on decommissioning in your back pocket

This last statement is rather based on the easy financing conditions of recent years. I am continually probing utilities and other energy co’s on whether the Credit Crunch has bitten them yet, and they all say ‘no’. But I really wonder if this can remain the case indefinitely.

If it doesn’t, the lights will go out some time in the middle of the next decade.

ND