Bailout possibility for British Energy

SPECULATION was mounting yesterday that the British Government will offer an emergency rescue package to struggling nuclear giant British Energy this week.

Details of what the lifeline would involve are not known, but it is thought the Department of Trade and Industry will agree to guarantee credit worth around £450 million for the group.

The move would enable Britain’s biggest electricity producer to continue trading while a long-term solution is found. Other options which may be considered include excluding the company from the climate change levy or having its local authority rates reduced.