Legal battle over energy (From Stroud News and Journal)

Legal battle over energy

STROUD-based renewable energy company Ecotricity is calling on the Government to plough money into green energy sources rather than bail out the ailing nuclear industry.

In response to the announcement that the loan to British Energy has been extended and increased to £610m, Ecotricity's founder Dale Vince has issued a challenge to the Government.

"This loan will only keep British Energy afloat for two months. "Give us the money and we'll power 15 per cent of the UK from wind power forever.

"The Government should pull the plug, cut its losses, and invest instead in new clean renewable sources of energy."

Ecotricity and Greenpeace are challenging the legality of the Government's recent decision to provide a loan facility to the stricken nuclear generator.

Greenpeace and renewable energy provider Ecotricity begun legal action to stop the bailout and get the money repaid to the British taxpayer.

The European Commission has confirmed that the loan was made without its approval, which, Greenpeace and Ecotricity say is a clear breach by the UK Government of the law governing state aid.

In the last few days the Belgian Government has made a formal complaint to EC about the bailout. Several power companies are also reported to have complained to the Commission.

Ecotricity and Greenpeace have asked the High Court for a judicial review of the decision by Patricia Hewitt, Secretary of State for Trade and Industry to provide state aid to the cash strapped nuclear company without EC approval.

Greenpeace nuclear campaigner, Rick Le Coyte said: "We are going to court to get this handout paid back to the public purse.

"It's a senseless waste of taxpayers money and is damaging truly clean energy providers. "People have been conned by the nuclear industry for too long.

"Both Britain's nuclear operators are having to be rescued from financial meltdown with millions of pounds of taxpayers money - for dangerous and expensive energy we don't need."