(BN) U.K. Nuclear Delays May Cost $600 Million, Critchlow Says


U.K. Nuclear Delays May Cost $600 Million, Critchlow Says
2010-11-22 10:24:33.333 GMT

By Catherine Airlie
Nov. 22 (Bloomberg) -- More delays in Britain's nuclear-
energy program may cost 400 million pounds ($600 million) in
lost profit and put the country behind China, according to an
analyst at Bain & Co.
"In nuclear we have probably fallen behind schedule by six
months and risk falling even further behind if there any delays
in electricity-market reform," Julian Critchlow, the London-
based head of global utilities at Bain, said in phone interview.
Britain had "a unique opportunity to enact policy," he said.
Chris Huhne, energy secretary for the Conservative-Liberal
Democrat coalition government, said Nov. 17 that changes in
energy regulation would be a "seismic shift" to secure
investment in nuclear and renewable energy to reduce emissions.
The U.K. plans to replace about a quarter of its fossil-fueled
and nuclear power stations due to close this decade.
Rolls Royce Group Plc, BAE Systems Plc, Halcrow Holdings
Ltd, and National Grid Plc are among companies investing in
nuclear power station projects in Britain, Bain said in an e-
mailed report.
Some 39 countries are planning to build about 300 new
reactors over the next two decades, according to Bain. China is
leapfrogging the U.K., while South Korea is already ahead in
nuclear expertise, the consulting firm said.

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--Editors: Mike Anderson, Reed Landberg.

To contact the reporter on this story:
Catherine Airlie in London at +44-20-7073-3308 or

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Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net