The European Commission has launched an investigation into the UK government's support for nuclear generator British Energy.
The Commission will analyse the proposed restructuring aid that government plans to give British Energy. The company faced financial difficulties since September 2002, largely due to the New Electricity Trading Arrangements (NETA) which caused a fall in prices for wholesale electricity.

The government plans to relieve British Energy of liabilities for nuclear waste, which is worth over £3 million to the company. There are also proposes new contracts between British Energy and British Nuclear Fuels to vary the cost of managing British Energy's spent fuel – benefitting British Energy by £148 million.

The Commission's in-depth probe aims to assess whether the government's plan will restore British Energy's viability within 'a reasonable time period'.

British Energy is one of the most important suppliers of electricity in the UK. It was privatised in 1996 and operates six nuclear power stations in England, and two in Scotland.

It is the only private operator of nuclear plants in the UK, and supplies electricity on the wholesale market and to large industrial customers.

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