British Energy gets temporary state credit rise

British Energy Plc , the UK's biggest power producer, said on Thursday the UK government had agreed to increase its credit facility temporarily by 75 million pounds ($129 million), to 275 million pounds. Rescued from insolvency last year by a state bail-out, the loss-making producer of a fifth of Britain's power had said on Wednesday that it asked for more cash on top of its existing emergency loan.

The move followed an announcement that unplanned stoppages at two nuclear power stations had cost it around 50 million pounds. "The company is facing short-term pressures on liquidity," British Energy said in a statement. "Taken together with other initiatives, this temporary increase in the government facility will provide the company with additional financial flexibility." British Energy said the temporary increase in the loan would only be available until February 22, 2004, or until the receipt of proceeds from the sale of its 50 percent stake in U.S. company AmerGen Energy Co.

Reuters Power News