Sports Calendar

A: British Energy is the company that operates Britain’s current fleet of nuclear power stations. It is the country’s biggest power generator and produces around one sixth of UK electricity.

The company’s eight ageing nuclear power plants - many of which were built in the 1960s - are reaching the end of their lives and need to be replaced.

They are suffering age-related operational problems and several have been closed down intermittently for emergency repairs.

Because any new stations are likely to be built on existing nuclear sites, British Energy is set to play a critical role in the programme.

Q: Why was the company put up for sale?

A: Because the company lacks the financial strength and expertise to go it alone, the UK Government wants to use the sale of its 35 per cent stake to a bigger company to kickstart the new nuclear construction programme, which was announced in January.

The sale of the Government’s stake would automatically trigger a takeover of the entire company.

Q: Who is EDF?

A: EDF, France’s biggest electricity company, is 84 per cent owned by the French Government. It is also the world’s biggest and most experienced nuclear operator with 58 reactors at 19 sites across France generating over 80 per cent of the country’s electricity.

Already one of the biggest utilities in the world, its interest in British Energy stems from a desire to use its nuclear expertise to expand overseas.

It wants to build at least four new nuclear power stations in the UK using French technology from another state-controlled company, Areva.

Q: Why did the deal collapse?

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax