Nuclear group British Energy reports huge losses
Struggling nuclear group British Energy showed the extent of its troubles today as it reported losses of £337m (€552m) for the last six months – equating to £1.9m (€2.94m) a day.
The group, which is being kept afloat by a British government lifeline, said it was at a “bleak point” in its fortunes and that it could face administration if creditors failed to approve a crucial restructuring scheme.
British Energy, which supplies a fifth of the UK’s electricity, fell into trouble in September when it warned the Government it could face insolvency unless it received immediate financial aid.
The group has been battered by the steep decline in electricity prices in the UK.
To keep it afloat, it was given a million lifeline by the British government, which was extended until March 9.
Chairman Adrian Montague, who replaced Robin Jeffrey who departed last month, said today: “I take up the position of chairman at a bleak point in our company’s future.
“The combination of high fixed costs for our nuclear stations and low power prices, coupled with our lack of tied retail outlets and a high level of unscheduled outages, has inflicted terrible damage on our company.”
He added: “The restructuring proposals agreed with the (British) government offer our company the opportunity to start on the long path to recovery.
“It will involve considerable sacrifice on the part of the company’s major creditors and shareholders.
“However, these creditors have yet to agree to participate in the restructuring scheme, and if they do not, or if the restructuring cannot proceed for some other reason, the company is likely to have to seek the protection of administration. The next few months will be decisive.”
Friends of the Earth’s nuclear campaigner Bryony Worthington said: “Hardly a week passes without some new revelation showing that nuclear power is a complete liability.
