The fall in the oil price is doubly good news for the Government. Not only does it reduce the pressure on inflation. It also improves the prospects of a sale of British Energy to EDF, which should add £4 billion to the Treasury's depleted coffers.

Six weeks ago, with oil around $140 a barrel, British Energy's board suggested that runaway wholesale energy prices meant the company was worth far more than anyone was willing to pay.

Now the chances of a deal look better.

British Energy represents a big opportunity for its new owner, mainly through its ownership of most of the sites for new nuclear power plants. But it is an opportunity fraught with big risks and liabilities linked to its fleet of clapped-out old power plants. In the absence of another bidder, a sale to EDF and possibly Centrica looks a good option.

Britain urgently needs these new plants to plug a looming energy gap and reduce a growing dependency on imported fossil fuels. The alternative to a sale - a break-up into a series of joint ventures - would be a minefield of delays and disputes.

There is a more immediate reason why a quick resolution is desirable. Running nuclear power stations is not like any other business. None requires quite the same management attention to detail, with such grave potential consequences.

While there is no indication that British Energy's board has taken its eye off the ball, it cannot be wise to leave this company in limbo for much longer.

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