THE cost of the unplanned shutdown at Heysham One power station is spiralling.

British Energy had warned the closure at Heysham could cost up to £30 million when it was forced to close after a seawater-cooling pipe broke in October.

But the energy giant now says further pipe work means the reactor is to remain out of action until the New Year - costing even more.

It had been hoped the reactors would have re-opened by the end of last month.

"It will have a great impact on the output and the additional costs because the shut down has been longer than first thought, although we are unable to quantify costs at the moment," says Andrew Dowler, spokesman for British Energy.

"But it will not have any impact on the restructuring plan, which is all still going ahead," he adds.

He says the company will not need to increase the £275 million it has borrowed from the Government for restructuring.

In June, the company made a reported £4.3 billion loss and the Government threatened to put the company into the hands of administrators if it failed to complete a restructure by the end of October.

But it was saved by shareholders in an eleventh hour deal.