So the auction for British Energy limps on, with the disclosure that three proposals and not one, as feared, have been received from parties interested in taking over the company.

Leaving aside the fact that one of these proposals does not yet have a value, so is hardly convincing evidence of great interest, the suspicion lingers that this particular Government auction has been a flop.

RWE of Germany, Iberdola of Spain and EDF's compatriot Suez may be the mystery bidders, in various combinations, behind these approaches but hopes of an offer in excess of 800p appear to have evaporated.

People familiar with the way discussions have proceeded have pointed the finger at NM Rothschild, the bank that is advising BE, for trying to pair parties off with each other and generally trying to goad each player into a higher offer. Rothschild may have some questions to answer but it was probably the unrealistic expectations that the market appeared to have of the competition that caused some parties to think carefully about the level they were bidding at.

The only strategic reason the giant energy companies have for bidding for British Energy is to secure the best sites for the next generation of nuclear power. BE may have the most suitable sites for new nuclear power, but it does not have the only ones. The Nuclear Decommissioning Agency also has land and given the long timetable that new nuclear is subject to, there is yet time to develop greenfield sites. If BE were to go for an unrealistic price, it might even prove more economic too.

The Government could yet call the bidders' bluff and call off the auction, if it thinks it will not raise sufficient funds. But ministers have already pulled back once before, spooked by nervous markets. With the economy showing signs of deteriorating even further in the medium term, the chances are that it will press on with the auction, however slim the final profit turns out to be.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax