Long haul ahead to plug Energy gap

BANKERS are clearing the decks for a lengthy restructuring of nuclear-power producer British Energy, suggesting the Government's £410m loan guarantees will need to be extended beyond the first 27 September deadline.

But advisers doubt that renationalisation of the stricken group is on the agenda, despite pressure from trade unions.

Gas group Centrica sought to calm fears that it will be entangled in the affair through its contracts to sell electricity at a fixed price in Canada.

Centrica buys power from BE's Bruce reactors in Ontario. If they stopped producing, it might need to buy more expensively elsewhere. Centrica fell 7 1/2p to 175p, but is confident that Bruce, which is highly profitable, will keep going.

Ministers would run away from renationalisation because it would suck taxpayers into potentially huge costs, including clean-up bills of £14bn. This explains the speed with which last weekend's short-term rescue was arranged.

But political blood may flow as Trade Secretary Patricia Hewitt, Energy Minister Brian Wilson and their Downing Street bosses wrangle over thorny issues. Can they persist with their shiny new Neta power-trading system, when BE has been pushed over the brink?

In their efforts to keep BE in the private sector, can they subsidise it against protesting rivals? After all this, can new nuclear stations ever be financed?

BE shares crept up 1 1/2p to 22 1/2p, a triumph of hope over the facts.