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Last Updated: Tuesday, 20 June 2006, 07:21 GMT 08:21 UK
Price boost lifts British Energy
Boiler tubes at power station
British Energy says it has benefited from higher energy prices
British Energy has reported pre-tax profits of 599m ($1.1bn) - the nuclear power firm's first set of results since a major restructuring last year.

The company, which sells electricity to wholesale customers, said it had benefited from higher energy prices.

British Energy completed a financial rescue deal in 2005, which saw it issue new bonds to creditors in a bid to avoid bankruptcy.

The firm operates eight nuclear power plants and one coal-fired station.

"We have seen rapidly changing energy markets leading to a significant increase in UK power prices over the year," said chairman Sir Adrian Montague. "British Energy has benefited from these price increases".

However, a report in March this year warned that the cost of covering British Energy's nuclear liabilities had gone up by 50%, following a costly government bail-out of the nuclear power generator in 2002.

The National Audit Office said that UK taxpayers faced a "significant risk" of a bill of 5bn.

The government has indicated that it is prepared to sell part of its majority stake in the firm.




SEE ALSO
British Energy risks public purse
17 Mar 06 |  Business
Power price boosts British Energy
13 Dec 05 |  Business
Blair reignites nuclear arguments
29 Nov 05 |  UK Politics
Losses increase at British Energy
14 Feb 05 |  Business
British Energy relists its shares
17 Jan 05 |  Business

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