Nuclear generator British Energy today warned the return to service of its Hartlepool and Heysham 1 reactors will cost much more than originally thought.

Nuclear generator British Energy today warned the return to service of its Hartlepool and Heysham 1 reactors will cost much more than originally thought.

The Scottish company said the timetable for bringing the reactors back online was unchanged, but added costs are now estimated to be around £115 million in the 2008/09 financial year, compared with previous hopes for £50 million.

More than 1.2 million man hours have been spent on work at the two stations, which have been out of action since last autumn after wire corrosion issues were identified within boiler units.

The loss of power from the two stations meant British Energy's nuclear output fell to 9.5 terawatt hours (TWh) in the three months to June 29, compared with 13 TWh a year earlier. Adjusted earnings of £129 million were down from £253 million in the comparable period, despite higher power prices.

East Kilbride-based British Energy added that discussions continued in connection with a potential offer for the company. It has rebuffed two takeover offers from EDF for being too low, while Centrica is also thought to be interested in a deal.