Britain’s largest producer of electricity, British Energy, is being pursued by a number of large energy companies, with RWE, EDF and Centrica looking most likely contenders to win the prize. Not only does British Energy operate 8 out of the 10 Nuclear power stations in the UK but it also controls access to many of the best sites for new reactors. This makes it an attractive option, despite its ageing fleet of advanced gas-cooled reactors, because the government is keen to re-embrace the Nuclear option. The UK government is considering selling off part or all of its 35% interest in British Energy in order to raise money for the public purse. However, at the same time it is concerned to develop competition in the nuclear industry and to avoid a monopoly by one company. Centrica has shown interest in the bidding for British Energy but lacks the necessary nuclear experience and financial strength. However, it is UK owned and as such holds a strong position and may be able to provide either EDF or RWE with a British tag with which to placate government and public fears about such a strategically important company falling into foreign hands. NM Rothschild, the investment bank, is handling the sale with bidding under way and a sale possible by July.

Oil prices have continued to soar to record levels with prices for May delivery for a barrel of Brent crude oil reaching $112 as bad weather hit the Gulf of Mexico causing the shutdown of three of the main export terminals. On top of this, a Russian oil executive increased supply fears by announcing that he thought Russian production had peaked at 10m barrels a day. Pressure is mounting on Opec to increase production, with both Brown and Bush putting the blame for high oil costs onto oil-producing countries. However, Opec has said that it considers the world oil markets were well supplied and it is expecting a slowdown in demand as a result of seasonal change.