EU: The European Commission has approved a British government-backed bailout of the nuclear group British Energy on condition that the state aid is used only to decommission nuclear power plants, writes Denis Staunton in Brussels
Competition Commissioner Mr Mario Monti said the government funds approved could not be used to subsidise competitive operations such as energy trading with large business customers.
"Today's decision demonstrates the Commission's ability to apply competition rules in newly liberalised energy markets with great success.
"The outcome of this case takes full account of the comments made by British Energy's competitors and the need to ensure security of supply at all times," he said.
British Energy, the largest power producer in Britain, runs eight of the country's 16 nuclear plants.
All of British Energy's nuclear plants will be decommissioned over the next 30 years.
The company almost collapsed two years ago after a fall in British electricity prices.
Under the bailout plan, the British government will make up the shortfall - estimated at up to €6 billion - in the cost of decommissioning the plants.
The deal will not directly affect the future of Sellafield, which is run by British Energy's competitor, British Nuclear Fuels.
Mr Claude Turmes, a Green MEP, condemned the Commission's decision as a "death sentence" for fair competition in the European energy market.
"This decision is a disaster. It will artificially lower the costs of nuclear electricity by injecting billions of euro from Europe's taxpayers - who in the majority oppose nuclear power
"It sends other nuclear operators the signal that they are 'too big to die' and will open the door for nuclear operators in other parts of Europe to go begging for billions of euro for their own nuclear waste liabilities.
"It is nonsense to create an internal market in which one-third of the electricity is protected and subsidised," Mr Turmes said.
Greenpeace also condemned the decision as giving a green light to the squandering of taxpayers' money on an unsafe energy source.