This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6704145.stm

The article has changed 5 times. There is an RSS feed of changes available.

Version 0 Version 1
Government to sell nuclear shares Government to sell nuclear shares
(10 minutes later)
The government is to sell more of its stake in nuclear energy firm British Energy, to fund the cost of shutting down nuclear power stations.The government is to sell more of its stake in nuclear energy firm British Energy, to fund the cost of shutting down nuclear power stations.
The sale of 400 million shares will cut the government's stake from 64% to 39%.The sale of 400 million shares will cut the government's stake from 64% to 39%.
The aim is to make the Nuclear Liabilities Fund, intended to cover nuclear clean-up costs, less reliant on British Energy shares.The aim is to make the Nuclear Liabilities Fund, intended to cover nuclear clean-up costs, less reliant on British Energy shares.
The news came as the firm announced a 44% rise in underlying annual profits to £1.22bn, buoyed by rising prices.The news came as the firm announced a 44% rise in underlying annual profits to £1.22bn, buoyed by rising prices.
The government first announced its plans to reduce its stake in the UK's biggest energy producer in the 2006 Budget.The government first announced its plans to reduce its stake in the UK's biggest energy producer in the 2006 Budget.
The latest sale - to financial institutions - is to take place immediately.The latest sale - to financial institutions - is to take place immediately.
ShutdownsShutdowns
Despite the rise in profits, British Energy said that problems at two of its power plants had continued to disrupt its electricity production levels.Despite the rise in profits, British Energy said that problems at two of its power plants had continued to disrupt its electricity production levels.
BRITISH ENERGY N-PLANTS Hunterston B, AyrshireTorness, East LothianHartlepoolHeysham 1 and 2, LancashireHinkley Point B, SomersetDungeness B, KentSizewell B, Suffolk Check British Energy shares
The firm warned last year that it had discovered cracked pipes in nuclear plants at Hinkley Point in Somerset and Hunterston in Ayrshire.The firm warned last year that it had discovered cracked pipes in nuclear plants at Hinkley Point in Somerset and Hunterston in Ayrshire.
Both sites shut as a result of the problems, and were only given the go-ahead to restart the plants at the start of this month.Both sites shut as a result of the problems, and were only given the go-ahead to restart the plants at the start of this month.
As a result of the closures, energy output fell to 58.4 terawatt hours (TWh) from 68.4 TWh a year earlier.As a result of the closures, energy output fell to 58.4 terawatt hours (TWh) from 68.4 TWh a year earlier.
But during the period, power prices jumped to record levels as a result of the rising cost of natural gas, allowing British Energy to fix sales at higher levels.But during the period, power prices jumped to record levels as a result of the rising cost of natural gas, allowing British Energy to fix sales at higher levels.
As a result, fixed contract prices rose to £44.20 per megawatt hour (MWh) compared with £32 in the previous year.As a result, fixed contract prices rose to £44.20 per megawatt hour (MWh) compared with £32 in the previous year.
British Energy - which generates around one-sixth of the county's energy needs - owns eight nuclear power stations and one coal-fired station in Eggborough, South Yorkshire and employs about 6,000 staff.
However, the update and news of the government's stake sale failed to impress investors.
Shares in the group were 23.25 pence, or 4%, lower at 546p in midday trade on the London market.