Shutdowns drain British Energy cash

NUCLEAR generator British Energy confirmed the parlous state of its finances today, saying unplanned cuts at its power stations are eating into the £210m Government loan that is keeping it afloat.

Safety problems at Sizewell B in Suffolk and Heysham 1 in Lancashire will close those plants for another fortnight.

BE said today the need to go into wholesale electricity trading market to replace the lost output and fulfil its contracts with the National Grid will cost it up to £30m.

That is draining the finances of the UK's leading electricity producer,which is only continuing to operate after a £5bn Marconi-style debt-for-equity restructuring secured on credit lines from the Government.

BE said that after ringfenced interest payments and £338m cash deposited as collateral for its open-market electricity deals, costs of Sizewell and Heysham will eat into its £37m of net cash balances or its Government lifeline, which stood at just £94m by the end of last week.