Britain's two nuclear electricity generators have signed an agreement to develop a new generation of reactors.

The move is the first concrete commitment from BNFL and British Energy since the publication of the government's energy review, which called for a debate on investment in new nuclear power stations.

Forum Response: BNFL

Norman Askew, chairman of BNFL, told ePolitix.com: "BNFL, through our Westinghouse business, has developed one of the world's most advanced reactor technology systems, the AP1000. This reactor design is ready for deployment now and we are delighted that British Energy want to pursue this option with us further.

"This agreement is the first concrete commitment from two companies since the publication of the PIU report and represents a significant step forward in the quest to build a replacement nuclear power station in the UK."

Forum Response: British Energy

Robin Jeffrey, executive chairman of British Energy, told ePolitix.com: "The government's energy policy review acknowledged the key role which could be played by nuclear power in ensuring a balanced, stable and secure energy supply.

"This conclusion, coupled with the clear recommendation last week from the House of Lords select committee on security of supply that the UK should maintain a nuclear share in generation of no less than 20 per cent, signals a positive future for the UK's nuclear industry. Today's agreement will assess licensing and regulatory issues, and deliver robust cost estimates for the new stations we propose.

"Twenty five per cent of Britain's energy comes from nuclear generation, and it produces huge benefits by allowing us also to continue using gas and coal and still meet our environmental commitments. Britain can't afford to lose that."