Centrica executive to head British Energy
By Andrew Taylor, Utilities Correspondent
Published: February 4 2003 12:17
Troubled nuclear generator, British Energy, has ended its search for a new chief with the appointment on Tuesday of Mike Alexander, currently chief operating officer at Centrica.
Mr Alexander, 55, replaces Robin Jeffrey who was ousted as chairman and chief executive last year after the company's credit rating was cut to junk status and its share price collapsed.
Adrian Montague, deputy chairman of Network Rail, was appointed British Energy chairman at the end of November.
Mr Alexander becomes chief executive during a critical period for British Energy. The nuclear generator is still threatened with administration unless creditors agree terms for a government backed rescue by February 14.
Ministers have agreed to provide £2.1bn ($3.5bn) to help pay for nuclear fuel decommissioning liabilities provided shareholders and lenders accept a substantial dilution of their interests.
Bondholders under the terms of the deal are expected to lose up to 75 per cent of the value of their original loans.
Mr Alexander, who joined Centrica in 1991 from BP, helped transform the company from a pure gas supplier into a broad based group providing a wide range of home services including electricity supply, financial services, home insurance, vehicle recovery, telecommunications, central heating, plumbing and kitchen appliance repair.
Mr Montague, who oversaw the restructuring of Network Rail, said: "Mike is a highly regarded senior director with just the right combination of skills and experience for British Energy at this critical time as we seek to reach agreement on our financial restructuring. He has an exceptional record in driving major organisational change."
British Energy however has still to resolve the position of Mr Jeffrey.
Mr Alexander said: "The group told shareholders last month that Mr Jeffrey remained a board member because the terms of his departure had not yet been settled."
Speaking at a shareholders' meeting, Mr Montague said: "We don't want to make his departure (Mr Jeffrey) any more expensive than necessary. He plays no part in the management of the company's affairs."
Announcing the rescue deal in November, Patricia Hewitt, trade and industry secretary, warned of the "very damaging signal" that would be sent by a high payout to Mr Jeffrey.
"I have made my views about big rewards for big company failures very clear." she said. |
