Nov 07 - Daily Mail; London (UK)

British Energy shares are likely to tumble today after the electricity provider last night announced it has discovered further problems at its nuclear reactors.

It means reactors which provide around 3pc of the UK's electricity needs could be out of action for months, potentially causing a spike in prices ahead of the winter season.

In a statement issued after the market closed, British Energy said inspections of its Heysham 1 Reactor have 'identified a similar issue to that identified at Hartlepool Reactor 1, whereby one wire has failed as a result of corrosion'.

The two Hartlepool and two Heysham reactors, which are all of the same design, will remain closed .

With four of its 16 reactors out of action, British Energy's electricity output will be down by a quarter.

Its shares fell 8pc when the problem at the first reactor were announced on October 22.

It is a blow to boss Bill Coley, though most of the generator's problems are due to its aging plants, rather than management failures. The shares closed up 812p at 555p.

Read more on British Energy at http://www.thisismoney.co.uk/bgy

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