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Public Loses as British Energy Rescue Passes Latest Hurdle
1 October 2003
Friends of the Earth today expressed its regret that banks and bondholders had agreed a government-backed deal to cut the value of their claims against British Energy (BE). The agreement means the Government's proposed rescue of British Energy can go ahead at a potential cost of up to 4 billion to the taxpayer.
Failure to agree the deal would have led to British Energy being taken into administration. This could have prompted the Government to review contracts between British Energy and state-owned BNFL to process BE's used nuclear fuel. Ending these contracts would be a cheaper, more environmentally-friendly way of helping BE than the Government's proposal. Friends of the Earth said today that hope now for a cheaper, more environmentally-friendly deal rests with the European Commission. The green organisation is urging the Commission to stand firm in it s argument that the deal is illegal under state-aid rules.
Friends of the Earth's energy campaigner Roger Higman said:
"This agreement may save Ministers' blushes, but it shouldn't hide their shame. The proposed deal will cost the taxpayer up to 4 billion. Now only the European Commission can make Ministers consider the cheaper, more environmentally-friendly alternative of taking British Energy into administration and ending the reprocessing of its used fuel. This whole sorry episode highlights the economic madness of nuclear power."
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Published by Friends of the Earth Trust
Last modified: Jun 2008
