§ The Secretary of State for Trade and IndustryThe current British Energy ("BE") Credit Facility Agreement (CFA) came into effect in September 2002 and expires on 9 March 2003.
In my statement to the House on 24 February, I confirmed that the Government would be prepared to continue to fund BE's operations while its restructuring plan was agreed and implemented, and that I was willing to extend the credit facility at a reduced level for a period after 9 March. In that statement, I also confirmed that I intended to apply for state aids approval from the European Commission for this continued financing as Restructuring Aid. This application is being sent to the Commission today.
Sufficient proceeds have been received from the sale of BE's stake in Bruce Power to enable BE to repay all outstanding amounts under the credit facility (amounting to about £215 million including interest and commission) to my Department today. On a contingency basis, I have decided with BE's agreement, to continue the credit facility, with the maximum amount available being reduced from £650 million to £200 million.
The credit facility will be extended to the earlier of 30 September 2004 or the date on which the restructuring plan becomes effective. The controls governing any drawings proposed by BE will remain in place. The credit facility will become repayable if certain milestones in the restructuring process are not achieved. We shall therefore continue to be ready with contingency plans for the administration of BE to ensure safety and security of supply.