British Energy's Finance Director steps down

Tuesday, 7 October 2003 12:00 AM

The troubled nuclear generator, British Energy, has announced that its Finance Director is to step down.

British Energy announced that Keith Lough is to step down to 'to pursue other career opportunities'. He is seen as key figure in the company's attempt to turn itself round.

British Energy, which supplies a fifth of the England and Wales' energy, has been kept afloat by a programme of Government loans. The company got into difficulty when the liberalisation of the wholesale power market saw electricity prices fall below the company's production costs.

British Energy announced in June that it had made a £4.3 billion loss for the year after it had to write-down the value of its nuclear power stations.

The Government decided to step in to ensure the security of the company's nuclear power stations. The Trade and Industry Secretary, Patricia Hewitt agreed to allow the company to borrow up to £650 million.

Mr Lough was said to have worked 'tirelessly' on securing the £1.3 billion rescue package that the company agreed with its creditors.

Mike Alexander, Chief Executive, stated: 'Keith Lough has done an exceptional job to secure British Energy's future. He has worked tirelessly to find a solution to a hugely complex situation with many different interests.'

Mr Lough has agreed to stay on with the company until a replacement can be found. Mr Alexander stated that Mr Lough leaves with the company's best wishes and gratitude for his work.

Mr Alexander added: 'Only now that creditors have formally signed up to the restructuring has he decided to leave, and he has agreed to stay during the interim period as we seek his replacement. He will leave with our best wishes and gratitude.'

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