Nuclear power in a competitive market

The last seven years have seen a dramatic and profound change to the structure of the electricity supply industry in the UK. The privatization programme, the relaxation of restrictions on the use of natural gas for power generation, and the development of efficient combined cycle gas turbine technology have led to a rapid change in the generation sector. Throughout this period nuclear power generation has provided a steadily increasing proportion of total electricity demand. The improved performance of the AGRs was one of the main factors which made privatization of British Energy possible. However, wholesale prices for baseload electricity have been falling in real terms since 1993/94. The challenge for the operators of nuclear plant is to remain competitive and to meet customer needs against this background. The environmental benefits of nuclear power generation, in terms of the negligible emissions of greenhouse gases, are well known but at present these do not give a competitive edge in the market-place. Nuclear operators must continue to operate safely, cut costs to remain competitive and operate more flexibly than hitherto.