Exhibit 12(b) TXU EUROPE LIMITED (FORMERLY KNOWN AS TXU EASTERN HOLDINGS LIMITED) (SUCCESSOR COMPANY) COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES ((POUND) MILLION, EXCEPT RATIOS) PERIOD FROM PERIOD FROM NINE MONTHS PERIOD FORMATION FORMATION ENDED FROM FORMATION THROUGH THROUGH SEPT 30, 1999 THROUGH DECEMBER 31, 1998 MARCH 31, 1999 SEPT 30, 1998 ----------------- -------------- EARNINGS: Net income (loss) 77 126 71 (25) Add: Minority income (loss) 11 21 7 (3) Income tax expense (benefit) 67 106 68 (19) Fixed charges (see details below) 281 369 263 183 Less: Interest capitalized (4) (5) 0 (3) ---------- ---------- ---------- ---------- Total earnings 432 617 409 133 ---------- ---------- ---------- ---------- FIXED CHARGES: Interest expense 269 356 259 174 Add: Interest capitalized 4 5 0 3 Rentals representative of the interest factor 8 8 4 6 ---------- ---------- ---------- ---------- Total fixed charges 281 369 263 183 ---------- ---------- ---------- ---------- RATIO OF EARNINGS TO FIXED CHARGES 1.5 1.7 1.6 0.7(a) ========== ========== ========== ========== (a) For the period from formation to September 30, 1998, fixed charges exceeded earnings by (pound) 50 million