Background and Summary
3.This Act is designed to facilitate the Government’s response to the financial difficulties of British Energy(1), Britain biggest electricity generator and only private sector nuclear generator, and to allow the Government to plan for a smoother path through administration should British Energy not be able to deliver its restructuring plan.
4.Although the provisions of the Act are especially relevant to British Energy’s position, with the exception of Section 1, they have general application.
5.The Act is an enabling Act and:
provides parliamentary authority for the Secretary of State to incur expenditure on British Energy plc or its subsidiaries
amends the Electricity Act 1989 to remove the barrier to the Government acquiring shares in ‘successor companies’ (companies formed during the restructuring of the Electricity Industry prior to privatisation); and provides for the repeal of Part 2 of that Act
amends the 1989 Act to remove the ceiling on financial assistance by the Government in relation to nuclear liabilities (under Schedule 12 to that Act), and to change the tax status of such assistance.
meaning the British Energy group of companies, including British Energy plc and its various subsidiaries