British Energy's £50 million loan of taxpayer's money has been confirmed as illegal state aid by the European Commission. The UK Government's rescue package to save the failed private nuclear generator from financial meltdown is already the subject of legal action in the High Court by Greenpeace and renewable energy provider Ecotricity who want the money returned to the public purse.
The confirmation came in a letter to Green MEP Caroline Lucas from Mario Monti, EC Competition Commissioner, who wrote, "I would first like to confirm that the aid granted to British Energy by the UK Government does constitute unlawful aid, and has been registered by the Commission as such, since it was granted without prior authorisation by the Commission."
Greenpeace campaigner Rick Le Coyte said,
"British Energy has sunk so low that its survival is dependent on an illegal hand-out. What does it take for the Government to quit this broke and dangerous business? The Government's fixation with maintaining the nuclear option means it is even prepared to illegally prop up a failed company that wants 10 more atomic power stations when there are plenty of cheaper, safer and cleaner ways to get Britain's electricity."
Dr Caroline Lucas MEP said,
"In bailing out Britain's ailing nuclear industry the Government made clear its intention to continue supporting a dangerous, economically un-viable and deeply unpopular technology. It is now clear that the loan to British Energy was illegal under EU Law. The Commission says that it is up to the UK Courts to enforce the law: I hope they take up this challenge and make British Energy repay the money. The Government should invest instead in existing and emerging renewable energy. Had it done so in the first place this whole fiasco could have been avoided"
Green energy company Ecotricity and Greenpeace have asked the High Court for a judicial review of the decision by Patricia Hewitt, Secretary of State for Trade and Industry to provide state aid to the cash strapped nuclear company without EC approval. On the 26th September, the DTI announced it had extended British Energy's loan term and increased the aid package from £10 to £50 million. Britain's nuclear programme has already left the taxpayer with a huge bill of £5 billion to deal with its legacy of radioactive waste.
Dale Vince, Managing Director of Ecotricity said,
"This loan will only keep British Energy afloat for two months. For the same money we could build enough onshore wind energy to power 15% of the country. But we don't need government money to do this - onshore wind energy is ready now to deliver clean renewable energy with no subsidies."
A recent MORI poll showed that 72 per cent of respondents favoured renewable energy over nuclear generation [1]. Energy consultants AEA Technology, whose clients include British Energy, demonstrated that offshore wind farms off the coast of East Anglia would generate the same amount of power as the entire UK's nuclear sector [2]. Britain has wind reserves that could generate three times the nation's current electricity needs.
(1) MORI poll, May 2002 www.mori.com/polls/2002/greenpeace-energy.shtml
(2) Sea Wind East report, Greenpeace UK, July 2002 www.greenpeace.org.uk/seawindeast.htm
