Drax was cut loose by its owners in early August

International Power is now offering creditors of the plant 95p in the pound, revising a previous offer of 71p as Drax works to restructure its �1.3bn debt.

The generating company won the battle to take a stake in the power station in August this year, having seen off bids from investment organisations and a mining company.

The improved bid has been made on the hopes of larger profits as a result of increasing electricity prices.

Drax has been trying to restructure its finances since last year, when it was pitched into financial crisis by the collapse of TXU Europe, its biggest customer.

AES, the American utility that owned Drax, effectively abandoned the plant at the beginning of August after banks refused to accept its financial restructuring offer.