Greenpeace has succeeded in a High Court bid to launch a judicial review of the government's bail out of British Energy.

Together with renewable energy provider Ecotricity, Greenpeace will now have a January court date to challenge the legality of the government's move.

The environmental campaign group argues that trade secretary Patricia Hewitt broke EU laws when she bailed out British Energy in September with a £650 million loan.

European law requires member states to obtain EU approval before providing state aid to companies.

The DTI applied for European approval only after the loan to the ailing private nuclear generator had been made.

The European Commission is expected to rule during the next two weeks on the legality of the Government's late application for approval.

Reports suggest it will give the green light to the emergency loan.

Greenpeace feel Hewitt is falsely skewering the privatised energy market in favour of nuclear power by subsidising British Energy.

They will therefore press ahead with the judicial review even if the Commission comes down in the government's favour.

Mr Justice Maurice Kay granted permission for the January hearing on Friday "without prejudice" to the DTI's argument that Greenpeace had no legal standing to bring the case because it involved fair competition rules and not environmental issues.

Meanwhile, the deadline for the repayment of the loan falls next Friday, forcing ministers to either extend it or reach agreement on a deal to solve the company's financial problems.