British Energy hasn't ruled out building another nuclear power plant on Teesside, once an existing operation reaches the end of its life.

The new plant, costing in excess of £1bn, could be built next to the existing power station in Tees Road, Hartlepool, with construction starting around 2004.

Doug McRoberts public relations director at British Energy said: "The aim would be to have the new power plant up and running before the existing station reaches the end of its life in 2014.

"British Energy has identified seven potential sites for a new nuclear power station around the UK, and Hartlpool is one of them."

Hundreds of jobs could be created during the construction of the facility.

Mr McRoberts added: "However, because the new stations would have a smaller capacity than the existing plants, there would need to be ten around the country, compared to the current eight.

"A lot depends on the reaction of the Government to the recent Energy Policy Review, which will set out the UK's energy strategy for the next 50 years.

"The Government has around four years in which to decide what to do, so there isn't any real hurry on our part to make a decision on a new power station for Hartlepool."

Mr McRoberts said he expected the Government to go for a balance of energy sources, including nuclear power as well as renewable energy provided by wind farms and other clean energy facilities.

But he added: "A lot will depend on market conditions. At the moment the wholesale cost of electricity is too low.

"Sooner of later those prices will rise, which will make the possibility of a new nuclear power station in Hartlepool a viable option."

British Energy's current Teesside plant generates enough heat and light for every house in Hartlepool. .