Greenpeace and Ecotricity today announced that they were opening a new front against the British Government's support for ailing nuclear generator British Energy and taking its legal battle on to the European Court of Justice. They were earlier granted permission to judicially review the £50 million rescue aid from the Government to British Energy. They are now withdrawing from this case in order to be able to mount a full challenge in Europe, including seeking an annulment of the Commission's approval of the rescue aid.
Greenpeace and Ecotricity have received legal advice on European competition law which is that the proposed restructuring of British Energy will be illegal if it does not include 'adequate compensatory measures' to alleviate the effects of the state aid on British Energy's competitors. In situations such as this, adequate compensation would be in the form of closing some of British Energy's reactors to relieve chronic overcapacity and depressed wholesale power prices. Because this was not in the proposal the European Commissionn would not approve any package agreed between the Government, British Energy and creditors.
Matthew Spencer, Head of the Greenpeace energy campaign said:
"The proposals for restructuring British Energy are legally flakey and environmentally irresponsible. The Government should use the British Energy crisis to negotiate the rapid closure of its reactors and redouble its effort in the energy efficiency and renewables fields. British Energy's ceditors should not take this offer at face value - the whole thing will unravel in the courts over the next two years if none of British Energy's reactors are closed down."
Dale Vince, Managing Director of Ecotricity said:
"We don't need nuclear power. We already have 25% over capacity in the market place, and with nuclear only providing 20% of our requirements there is now ample opportunity to pull the plug. Only last week, Belgium announced it will phase out its nuclear energy programme between 2015 and 2025 even though it accounts for 60% of its total energy supply. It is therefore incredible that the government continues to prop up a company which simply isn't needed."
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Greenpeace press office on 020 7865 8255
