Britain may have to shut some nuclear power stations to win European Commission clearance for a state-backed revamp of the industry, according to industry sources.
Such a ruling by the Commission could raise the depressed price of electricity in Britain's oversupplied wholesale market, damp down protests from rival producers who call the plan anti-competitive, and please anti-nuclear campaigners.
But it may raise the cost of the plan itself - a complex restructuring of privatised nuclear generator British Energy that was pushed to the brink of insolvency last year by the same depressed power prices.
"Shutdowns will have to be on the agenda," said a senior UK power industry executive. "They are not part of the [government's restructuring] package, but that could be a negotiating position. It may have taken the view that if it offered one shutdown, the Commission would ask for two".
The Commission has cleared initial emergency state aid for British Energy on the grounds of nuclear safety and security of supply.
But an investigation into the restructuring is expected to start within weeks. Competition issues will be in the forefront, particularly after a draft energy law in May that included terms designed to ensure that nuclear firms cannot distort markets with funds that should be earmarked for decommissioning.