British Energy has been losing money steadily as the price of electricity on the wholesale market has dropped 40% over the past four years. It now costs more for the company to produce electricity than to sell it. Other electricity companies are also struggling in the current market – few are making money.
The nuclear power company is asking for a financial rescue package from the government. But Trade and Industry Secretary Patricia Hewitt told BBC News: “There’s no question at all of taxpayers writing a blank cheque to British Energy and its shareholders.” She said the only reason she was getting involved in discussions was because the government had a responsibility to ensure the safety of nuclear power.
As well as operating eight nuclear power stations in the UK, the company has a joint venture with a US energy group and is seeking a buyer for its share, which could generate £200-£300 million.