THE GOVERNMENT has extended a £650m emergency loan agreement to the owners of Heysham's power stations, easing uncertainty over the future of the sites.

British Energy, which has been facing serious financial dif-ficulties, was granted the loan last year and now has until September 2004 to establish a restructuring programme for the nuclear group.

The firm, which generates up to a fifth of Britain's power, has been hit by a fall in power prices and technical problems at its power stations, prompting concerns over jobs.