BusinessBusiness RecoveryTaxpayers to cough up more for British Energy

Taxpayers to cough up more for British Energy

Patricia Hewitt, the trade and industry secretary, has agreed to increase the government's loan to troubled British Energy.

Link: British Energy FD to step down

The company will now receive £275m of taxpayers’ money instead of £200m.

British Energy, which produces a fifth of the UK’s power, blamed the costs of Sizewell B and Heysham 1 as reasons for its cash problems.

Earlier this week bosses at British Energy claimed it was facing a short-term liquidity problem.

The department said the loan would only be available until February 2004 or until British Energy sold its interest in a US company, Amergen, whichever came first.

The loan will then be reduced back to £200m.

The department also said the money and subsequent interest would be repaid in full.

Related Articles

Carillion CFO blew whistle over “sloppy accounting” months before collapse

Business Recovery Carillion CFO blew whistle over “sloppy accounting” months before collapse

2m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

2m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

3m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

3m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

3m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

3m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

4m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

4m Emma Smith, Managing Editor