The generation gap widens as new reactors are put on hold

Plans to build new nuclear reactors to plug the looming gap in Britain's electricity generation will be delayed again by another round of wide-ranging consultation.

The Government is concerned that it could face another legal challenge from pressure group Greenpeace if it does not consult properly over its Energy Review.

Now nuclear companies have complained that, as a result, the Government is in effect "starting from scratch" on its plans for nuclear new build.

It has also emerged that nuclear generator British Energy has approached Centrica, owner of British Gas, about being part of a consortium to build the new reactors. British Energy wants to sign long-term supply contracts for the power from any new reactors.

Centrica signed a four-year deal with British Energy in 2003 to buy about a fifth of the electricity it needs to supply its own customers. British Energy wants Centrica, and other suppliers or energy-thirsty businesses such as manufacturers, to sign similar deals. Under this agreement, these companies could also take an equity stake in the reactors.

Corus, the steel maker bought by Indian firm Tata Steel, is also thought to have been approached to consider a stake.

These talks are at a very early stage. British Energy, which owns the sites most suitable for new build, wants companies interested in being part of a consortium to submit proposals by the end of the month.

The Government had planned to publish its long-awaited Energy Review this week. Publication could now slip into June.

Alongside the review, the Government will issue more consultations over nuclear power. This is after a High Court judge agreed in February with Greenpeace that the Government was pressing ahead with building more reactors without properly consulting over the move.

The judge said that new discussions on the economics of new nuclear build, and how to store the resulting radioactive waste, were needed.

Now the Government is planning to broaden these consultations to encompass the wider "principles" of whether more nuclear power is needed, to which companies will have to respond.

The nuclear industry also fears that this new round of consultation will not be completed until early next year at the earliest. Vincent de Rivaz, chief executive of EDF Energy, has said he wants to get started on building more reactors by the end of the year so that the first would be up and running by 2017.