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.
