Aging nuclear reactors in the UK has seen profits at British Energy plunge in the first half as output decreased drastically by 30 per cent and production fell by almost 50 per cent from last year's levels.

Nuclear power station operator British Energy with its eight nuclear power stations was generating around 14 per cent of the UK's electricity but, due to power station shutdowns for maintenance and lower electricity output, it posted a 50 per cent decline in profits.

The company's pretax earnings in the first six months to 28 September fell to 257 million pounds ($386.7 million) from 511 million pounds a year ago.

The company sounded optimistic for the second half and hoped profits would return in the coming winter months when demand for electricity is at its highest.

Releasing the figures for the last time, British Energy blamed its disappointing results on power station shutdowns, continuous maintenance programme and lower electricity output from its eight nuclear plants and one coal-fired power station.

Its Hartlepool and Heysham I nuclear stations have been closed for more than a year and the cost of repairing corroded wires and cooling systems would be around £125 million in this financial year, which is more than the previous estimate of £50 million made in January. The cost could still escalate if plans to bring the stations back to generating power did not work.

British Energy's total power output for the half-year to 22.7 terrawatt hours (TWh), compared with 30.7 TWh a year ago, which goes to prove that the aging and unreliable reactors have to make way for newer technology reactors.

British Energy, however, maintains that the lives of its reactors could be extended, although it has been generating power since 1976 and will continue to do so until 2016 with the same reactors.

Chief executive Bill Coley said the company will make five reactors operational at its Heysham, Dungeness, Hinkley Point and Hartlepool stations, before the end of next month, and will make two more in early 2009.

British Energy will have to wait until the French power giant takes it over and starts to expand with new reactors in the UK.

In September, French energy giant Électricité de France agreed to buy British Energy for $23.18 billion and the deal is waiting for the approval of its shareholders and the European competition authorities. (See: EdF to acquire British Energy for $23.2 billion)

EDF had said that it would build four EPR nuclear power units, two each at Sizewell and Hinkley Point. The 1600 MWe units would contribute 13 per cent of UK electricity by 2020.

EDF yesterday refuted claims that it has overpaid for the acquisition after British Energy reported its decline in profits and would likely end up paying huge amounts for putting its aging reactors back in working order.

Also, when EDF made the offer in September, the wholesale UK power prices were at a high of £115 per megawatt hour but have fallen by nearly half since then.

In Britain, there was also a huge opposition to the sale of British Energy and the government came under considerable flack for agreeing to the deal as it had a stake worth nearly $8 billion at September prices.

Bill Coley also said the government should go ahead and build new generation of atomic power stations as it has a very old generating fleet and the UK needs new capacity apart from the creation of jobs.