THE Government's proposed £2.1bn rescue package for nuclear generator British Energy could be challenged in the courts.
AES, the American owner of the UK's biggest power station, at Drax, near Selby, North Yorkshire, claims the rescue package could threaten future supplies by preventing wholesale prices going up.
AES believes the prices are currently at an uneconomic level and is considering legal action jointly with AEP, owners of power stations at Ferrybridge, in West Yorkshire, and Fiddler's Ferry, in Cheshire.
They are in discussions over whether to mount their legal challenge through the European Court of Justice.
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