EDF nuclear budget for UK is £25bn

French energy giant EDF is planning to invest at least £25bn in nuclear energy in Britain over the next nine years.

Chain reaction: EDF is said to have earmarked £10bn for four new reactors.

Financial Mail understands that EDF, which is favourite to buy nuclear energy generator British Energy, has earmarked £10bn to build four new reactors.

And it plans to spend a further £4bn to £5bn on maintaining and renewing ageing reactors at the eight nuclear sites owned by British Energy.

This massive investment comes on top of the estimated £11bn that EDF is believed to have offered for British Energy.

British Energy spends about £300m a year maintaining its plants, but EDF is expected to commit to increasing that total significantly because the plants are becoming increasingly unreliable.

British Energy was forced to shut down two nuclear plants last week because of technical problems. EDF's more modern reactorsin France have a far better reputation for reliability.

EDF executives, led by Vincent de Rivaz, are confident that they will be given preferred bidder status for British Energy.

Comments by Gordon Brown that he would like to see an enlarged nuclear industry are believed to be subtle digs at British Energy to get on with choosing a buyer.

Brown is becoming increasingly concerned about relentless price increases caused by the decline in oil and gas production. He believes the nuclear industry could become the main driver in providing cheaper fuel.

The Government, which owns a 35% stake in British Energy, can look forward to a £4bn windfall if Britain's only nuclear energy producer is sold. This money is vital to fill the hole in the Government's accounts as it considers deferring fuel duty increases.

British Energy is desperate to get the best possible price for its sale, but its attempts to create an auction have so far been unsuccessful.

The company insists it has received a number of indicative offers worth more than 680p a share. German energy giant RWE and Iberdrola of Spain are understood to be interested, but only EDF has tabled a fully detailed proposal.

Centrica, the owner of British Gas, is negotiating with EDF to buy a stake in any new-build nuclear company.