Q: What has happened?

A: The UK’s plans for a new generation of nuclear power stations are in tatters after a £12 billion deal that would have seen the French state take control of the bulk of Britain’s nuclear industry collapsed at the eleventh hour.

The takeover bid from French electricity giant, EDF, for British Energy, the UK’s nuclear generator, was withdrawn last night - hours before it was due to be announced - dealing a huge blow to the cornerstone of the Government’s energy policy.

A group of UK fund managers effectively stopped the deal in its tracks by demanding more money from the French.

Q: Why does this matter to me?

A: The UK is facing a looming energy supply gap.

Not only are Britain’s nuclear stations set to close but many of its polluting coal-fired stations will also be retired from service by 2015 because of tough new emissions rules.

Without rapid progress on new power stations the UK is facing an increasingly uncertain future. By the middle of the next decade, it could be a struggle to keep the lights on.

The Government wants to plug the supply gap with new nuclear stations and a huge increase in renewable energy, mainly from wind power - a strategy that will also allow it to meet its emissions reductions targets.

But the investments required to achieve this are huge - around £100 billion over the next decade.

Many experts believe the UK no longer has the skills to build new nuclear stations without outside help.

Q: Why is British Energy so important to all of this?

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