We believe that nuclear power has the potential to make an important contribution to meeting the challenges of affordability and security of energy supply while also tackling the global threat of climate change. In 2009 we formed a joint venture with RWE npower called Horizon Nuclear Power to develop plans for new nuclear power stations in the UK.
In March 2012, together with our joint venture partner RWE, we announced that we had reviewed our nuclear new build plans for the UK and decided not to go forward with them. We were disappointed that we had to take this decision, not least because of the dedication of the teams in Horizon Nuclear Power who have worked and continue to work hard to make this project a success.
Our decision was based on E.ON’s financial constraints. These include things like an earnings reduction from E.ON’s power generation business in Europe, the German nuclear-fuel tax and the decision by the German Government to end the operation of nuclear power stations, as well as the cost of long term gas contracts. None of these have been helpful.
Announcing the decision Dr Tony Cocker, Chief Executive of E.ON UK said: “E.ON has decided to focus its investment in the UK on other strategic projects that will allow us to deliver earlier benefit for customers and our company, rather than the very long term and large investment new nuclear power calls for.
“Our commitment to the UK remains as strong as ever and as our track record shows, with over £1bn of investment in the last year alone, we will continue to select the right projects in which to invest.”
We are now seeking investors to take over the running of Horizon Nuclear Power.