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.
More top news
A factory worker's faithful friends saved his life by lying with him to keep him warm when he fell into a diabetic coma in the freezing cold
A British military healthcare worker is being monitored at the Royal Free Hospital following a needle-stick injury in Sierra Leone.
A group of friends in Haverhill have left one of their mates with a fractured spine after a prank with a home-made ejector seat went wrong