Power stations at just £1 each

THE Government has the right to buy back eight British Energy nuclear power stations for £1 each if the rescue of BE fails.

The rescue terms were sealed at dawn on Wednesday after an all-night City session of banks, bondholders, lawyers and camp-followers - who will be amply compensated with fees of £100m.

The taxpayer takes nuclear clean-up bills of £3.9bn in return for 65% of BE's cashflow. All of this needs Brussels' approval.

BE shares, after a brief suspension, crept up 0.03p to 5.38p, valuing the once proud group at £38m.

Creditors will get 97.5% of the enlarged equity. That leaves just 2.5% of the company-for present holders. They also get warrants on 5% of the company, provided that BE's market value rises above £550m - a long way off.

Power prices are increasing, but it lost £40m in five months to August and has a £352m pension deficit. Much depends on new chief executive Mike Alexander improving BE's performance.