Two of Britain's 'big six' energy companies have pulled out of plans to develop new nuclear power plants in Britain.
RWE npower and E.ON have decided against proceeding with their "Horizon" project, which would have developed new nuclear reactors at Wylfa in North Wales and Oldbury-on-Severn in Gloucestershire.
The German-owned firms are looking for a new owner for Horizon Nuclear Power, blaming the high costs of the project and the global economic crisis for their decision.
Shadow chancellor Ed Ball claims foreign firms are thinking twice about investing in the UK due to a confusing energy policy and the Government's current economic plans.
Tony Cocker, chief executive of E.ON UK insisted his firm was still committed to investing in Britain.
Environmental groups claim the announcement proves that nuclear power, which provides just under a fifth of Britain's electricity supplies, should not be part of the UK's future energy mix.
Greenpeace UK's policy director Doug Parr says the Government needs to reconsider its energy strategy, with a nuclear future now clearly no longer a viable option.
ITV News' Damon Green says the decision by RWE npower and E.ON leaves the Government's plans for a new generation of nuclear power stations in disarray.