Dec 14 - Scotsman, The

BRITISH Energy said yesterday that extending the life-spans of its eight-strong fleet of nuclear power stations was central to its plans for the industry, but insisted it was not lobbying the government to build new ones.

The Livingston-based firm - which was reporting its first half- year profit since last year's restructuring - said it would look to add years to its Hunterston station in Ayrshire, taking the plant's life-span beyond 2011.

Chief executive Bill Coley said: "I keep telling my team there are three things they should be doing: working on operating efficiencies, financial capability and life extensions - anything else is the wrong focus."

He said he was not going to worry about the government's latest energy review, which is expected to give the green light to new nuclear stations. "I believe in a balance of energy sources to meet the needs of this country," he said. "That would include nuclear, but the government has been lobbied enough ... If we restore British Energy as a world-class nuclear operator ... I'm sure there will be a place for us."

British Energy achieved operating profit of GBP 135 million in the half year, but recent unplanned outages lowered its total power output. The company - which supplies about a fifth of the UK's electricity - pledged to invest more than GBP 250m in maintenance in 2005-6 - above what Coley said was his expected long-term target of GBP 140m a year.

The group is enjoying the benefits of high power prices, but has insisted that in the unlikely event of a market crash it would be able to cope. BE survived a financial meltdown two years ago only with government support.