Green lobby attacks rise in BE loan limit

British Energy shareholders approved an increase in the nuclear company's borrowing limit, keeping alive its hopes of emerging from its crisis as a solvent business.

The move came while anti-nuclear and pro-renewable energy groups stepped up pressure on the Government to force the company out of business.

British Energy has survived on Government money since September after market reforms exposed power generation overcapacity and sent prices below its cost of production.

Figures from an extraordinary general meeting in Edinburgh yesterday showed that more than 99 per cent of votes cast favoured setting a new fixed borrowing limit at £1.6bn.

Loan limit was previously set through a formula based on share capital and reserves. The company's financial plight has brought that limit down to just £1.1bn from over £3bn in 1997 and may have put its plans for restructuring in breach of company statutes.

Facing shareholders for the first time since his appeal for Government help in September, the executive chairman, Robin Jeffrey, repeated that he was hopeful, but not certain, of achieving a successful financial restructuring.

Mr Jeffrey also confirmed that Cameco, a Canadian uranium producer and its partner in the Bruce Power nuclear project there, had expressed an interest in raising its stake in Bruce last week, but he would not make any comment beyond saying that "all aspects of the business are under review".