FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
September 15, 2005
BRITISH ENERGY GROUP PLC
(Registrant's name)
Systems House
Alba Campus
Livingston
EH54 7EG
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):
Exhibit Index
The following document (bearing the exhibit number listed below) is furnished
herewith and is made a part of this Report pursuant to the General Instructions
for Form 6-K:
Exhibit Description
No. 1 RNS Announcement, re: Corporate Update dated 15 September, 2005
British Energy Group plc
15 September 2005
Life Extension of Dungeness B Power Station
The Company announces that it has completed the necessary technical and economic
evaluation, as well as requisite external reviews, and has decided to extend
Dungeness B's accounting life for 10 years to 2018. The decision extends the
expected life of Dungeness B for accounting purposes to 35 years in line with a
number of the Company's other power stations.
Bill Coley, Chief Executive Officer said:
"This decision is based on a comprehensive technical and economic evaluation of
Dungeness and is important in supporting the UK's security of electricity supply
and climate change goals for the reduction of CO2 emissions."
The decision with respect to Dungeness B is not indicative of the potential for
life extensions at the Company's other nuclear power stations which are subject
to separate technical and economic evaluation, currently expected to be
completed a minimum of 3 years before the scheduled closure date of each
respective station.
The Company expects total Group investment in plant projects, major repairs and
strategic spares to be GBP230m to GBP250m for the financial year 2005/06 and
GBP200m to GBP250m for 2006/07. This includes the cost of work during those
years with respect to the extension to Dungeness B's life. To enable this
station to operate for the full ten years it is planned to spend an incremental
GBP25m in total for the three years from 2007/08. This is in addition to
expected normal investment spend.
Contacts:
John Searles British Energy, Investor Relations 01506 408 715
Andrew Dowler Financial Dynamics, Media 020 7831 3113
Website: www.british-energy.com
Notes:
Under the terms of the Nuclear Liabilities Funding Agreement ("NLFA"), the
Company is required to notify the Nuclear Liabilities Fund Limited ("NLF") and
the Nuclear Decommissioning Authority ("NDA") in advance of any potential change
to the scheduled closure date of a power station.
Under the terms of the NLFA, the eventual costs of decommissioning British
Energy's nuclear power stations will be met from the NLF. The Company requires
the NDA's approval to any change to defer the scheduled closure date if the
change would result in an increase in the costs of discharging liabilities.
However, the NDA is required to approve the change if any economic benefit to
the Secretary of State or NLF exceeds the additional cost of discharging
liabilities. The Company has provided a programme of works to the NDA to extend
the original scheduled closure date. The NDA has confirmed that the economic
benefit offsets the additional liabilities.
The decision to extend the operating life of Dungeness B does not require a
decision by the Nuclear Installations Inspectorate, which performs separate
periodic reviews of the Company's power stations throughout their operating
lives.
Station Lifetimes
Station Scheduled Current Life
Closure Date Lifetime extension
already
Declared
Dungeness B 2018 35 years 10 years
Hinkley Point B 2011 35 years 10 years
Hunterston B 2011 35 years 10 years
Hartlepool 2014 30 years 5 years
Heysham 1 2014 30 years 5 years
Heysham 2 2023 35 years 10 years
Torness 2023 35 years 10 years
Sizewell B 2035 40 years 0 years
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: September 15, 2005 BRITISH ENERGY GROUP PLC
By:____John Searles____
Name: John Searles
Title: Director - Investor Relations