British Energy will extend the lives of Hinkley Point B and Hunterston B nuclear power stations by five years to 2016.

The two sites, which are currently running at around 60% capacity due to boiler issues, began generating power in 1976. Further studies will be conducted by 2013 regarding the potential for additional life extensions beyond 2016, the company added.

British Energy said today's decision was an important move towards supporting the UK's climate change goals and the reduction of carbon dioxide emissions. British Energy shares were unchanged at 528 pence.

Ayrshire-based Hunterston B and Hinkley Point B, near Bridgwater, Somerset, are both capable of supplying power to more than one million homes.