Energy geopolitics make nuclear option sensible for UK: minister

London (Platts)--13Feb2006

The geopolitics of energy suggest the UK should invest in new nuclear
power to ensure supplies, the country's energy minister Malcolm Wicks said
Monday, signaling his support for possible plans to build new nuclear plants.
     The government last month launched a long-term review of its energy
policy, including the possibility of developing a new generation of nuclear
power stations.
     "We are weighing up the arguments. On the pro side, nuclear energy is a
clean form of energy," Wicks told an industry conference in London.
     "The geopolitics of energy would suggest, other things being equal, that
it might make sense for the UK to home-grow more of its energy," he said.
     "Against that, however, is the crucial issue of nuclear waste. I think
the answers are probably there but we need to demonstrate that."
     The minister said that he was going into the energy review with an open
mind on the issue, saying he was "nuclear neutral."
     By 2020, coal and nuclear power plants currently generating about 30% of
the UK's electricity are expected to have closed. Nuclear, which now provides
19% of UK electricity, may provide only 7% by 2020 as ageing plants are
decommissioned.
     The UK became a net gas importer in 2005 and is also set to become a net
oil importer on an annual basis by around 2010.
     Wicks also said that any possible takeover bid for Centrica, the UK's
largest gas supplier, by Russia's Gazprom would face intense scrutiny.
     "The UK has always been open to foreign investment. But clearly, we have
objectives about competition. Any takeover needs to be subjected to the most
rigorous scrutiny, not least on grounds of competition," he said when asked
for his views on a possible Gazprom bid.
     Gazprom has played down recent speculation that it was studying a bid for
Centrica, saying it was only looking at the UK in general.
     The GMB union, which represents many workers in the UK energy sector,
last week urged the country's government to use blocking powers to ensure that
the Russian gas giant was not able to buy Centrica.
--Alex Lawler, alex_lawler@platts.com

For similar news, request a free trial to Power UK at
http://www.platts.com/Request%20More%20Information/

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.