The European Commission is expected to demand the break-up of troubled nuclear power group British Energy (BE), it emerged yesterday.

The commission said it was considering a plan under which the company would be split into three units, each with its own accounts, in return for the approval of a £5bn rescue package.

BE would still own the three businesses, which include its nuclear power, coal-fired power station and energy sales activities, under the proposals, a commission spokeswoman said.

But it would allow the UK Government to provide aid for the company's nuclear decommissioning activities while ensuring it could not be used to subsidise BE's other operations.

The commission spokeswoman confirmed that commission officials were consulting about the plan, but had not confirmed it.

"There has not been a final decision on this yet," she said.

BE was unavailable for comment. However, a spokesman for the group said on Wednesday that the commission had not notified it of the plan.