THE chairman of troubled power company British Energy predicted yesterday that the European Union would approve a multi-billion pound government aid package.

Adrian Montague brushed aside warnings that the bail-out was illegal and told shareholders at the annual it was "business as usual".

The European Commission is investigating a complicated state aid package to the firm, which the company puts at about £3bn over 85 years, although opponents claim the aid would amount to £4bn.

Mr Montague told the meeting in Edinburgh that British Energy had experienced a traumatic year and warned shareholders that a major restructuring plan to get the company back on track would be painful.