It turns out that the Government's decision to commit Britain to a nuclear future was the easy part. Despite the protests and the breast-beating at the prospect of nuclear energy, the decision was made and the aftermath has been quiet. Too quiet.

The difficult part is paying for the Government's new-found commitment to nuclear. Enthusiasm is in plentiful supply, cash is not. It could cost £36billion to build the stations. To break this potential impasse, someone has to think creatively and long-term about how to fund Britain's energy needs.

British Energy's £5.5billion break-up plan is a bold idea. The “oldco” part of the business could be left with the job of running its existing nuclear reactors, while “newco” could get on with building the new generation. A newco unburdened with the job of maintaining the existing eight power stations would be a nimble company with the knowledge and nuclear nous to build - if not the cash.

The original idea for the break-up came from the private equity industry, before the credit crunch put a stop to such ambitious plans. When the crunch unwinds, private equity players and others will be circling again. British Energy can meet the renewed interest from better financed competitors on its own terms if it pursues the break-up plan.

British Energy's major shareholder - the Government - is keen. British Energy owns virtually all the sites on which stations could be built, which makes it difficult for cash-rich outsiders to break into the industry. Newco would have to compete with everyone else to build on Oldco land, fostering the competition that Britain's tired nuclear industry so desperately needs.

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