Centrica pullout gives government a policy problem

EDF
EDF is the major investor in new nuclear Credit: PA

EDF says it "respect Centrica's decision" to pull out of new nuclear.

It says the Contract for Difference - in other words, indirect subsidy - is the key to getting new builds.

Centrica pulling out certainly puts more pressure on the government to sweeten the deal for EDF and other potential investors in new nuclear.

The Department of Energy and Climate Change insists the Centrica decision is "nothing to do with government policy". It certainly gives them a policy problem though.

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Centrica abandons nuclear plans

Centrica has decided to pull out of the UK's nuclear new build programme and will not take part in the construction of up to four new reactors, the firm announced.