The Government and BNFL have set a new strategic direction for the company following the completion of the joint review of the business ahead of the creation of the Nuclear Decommissioning Authority (NDA) in April 2005. The main conclusions of the review are:

• a new parent company will be established in April 2005 to hold those parts of BNFL outside the NDA's responsibility
• following the creation of the NDA, the principal focus of the company will be clean up at UK sites
• new subsidiary companies will be set up with responsibility for managing clean up operations
• the vast majority of the existing UK workforce will remain employed by companies that operate the current sites - other employees will transfer into companies within the clean up group
• a new Nuclear Science and Technology Company will be formed, to provide research and technology services on a commercial basis
• steps will be taken to allow Westinghouse to operate with greater financial independence and open up possibilities for private sector involvement.

Michael Parker, BNFL's Chief Executive, stated: "Following the creation of the NDA, BNFL must compete and win contracts for UK nuclear clean up. I know that we have the skills, knowledge and experience to succeed."

Meanwhile British Energy shareholders have approved the disposal to Exelon of British Energy's 50% interest in AmerGen Energy.

As a result British Energy received approximately US$277million. Of the proceeds £93million has been used to repay outstanding sums made available to British Energy under the UK Government credit facility. The balance, net of transaction costs and break fee, will be used as working capital and for collateral purposes. As a result of the sale the Government has reduced its loan facility to British Energy from £275 million to £200million.