British Energy rescue under fire

British Energy runs eight power plants in the UK

The government's controversial bailout of the nuclear power generator British Energy will come under scrutiny on Tuesday when energy minister Brian Wilson faces questions from a parliamentary committee.

"We want to get a better grip on what the longer term costs will be to the taxpayer," said Martin O'Neill, the Labour chair of the Trade and Industry Select Committee.

British Energy has been surviving on a £650m ($1.03bn) government loan since September.

Earlier this month, the loan was extended until March.

Wider worries

British Energy produces about 20% of the UK's electricity.

Mr O'Neill said that, while it was important that such a major electricity generator should be kept going, the committee wanted to make sure "that the government are in a position not to be taken to the cleaners" by the company.

Mr O'Neill also said the committee would want to know more about the implications for other firms whose business could be affected by the bailout, such as British Nuclear Fuels (BNFL).

BNFL reprocesses nuclear fuel for British Energy. As part of the government rescue plan, BNFL agreed to renegotiate its contracts with the company.

The government has also agreed to underwrite British Energy's multi-billion pound nuclear clean up liabilities.

The cost will average £150m-200m a year for the next 10 years and will then fall.

The company's troubles have sent the share price falling to 6.02 pence; a year ago shares were trading at 250p.