The work presented here revisits the Velikhov-ionisation instability, an instability first discovered in the early 1960s (Velikhov, E. P. 1962 1st International Conference on MHD Electrical Power Generation, Newcastle upon Tyne, England, p. 135). This mode strongly deteriorates the performance of magnetohydrodynamic (MHD) energy convertors in which the seed gas must be at a substantially higher temperature than the high density primary gas, the latter gas carrying almost all the energy. Specifically, a finite temperature difference is necessary for the MHD generator to successfully act as a topping cycle for nuclear (fission and fusion) power plants. The ionisation instability has thus been viewed for many years as a show stopper for MHD nuclear topping cycles. Even so, some experimental observations, never fully exploited, show that nearly full ionisation of the seed gas can stabilise this dangerous instability. One goal of the research presented here is to provide a first-principles theoretical explanation for these experimental observations. The stabilisation can theoretically produce high temperature ratios, of the order of 10, by carefully choosing the density of the unionised seed gas. A second goal of the research is to investigate whether or not the recent development of high-field, high-temperature REBCO (rare-earth barium copper oxide) superconductors can lead to substantially improved power plant efficiency. Here, it is shown that the answer is subtle – no clear conclusions can be drawn, a consequence of the fact that the new stability criterion is a local one. What is needed to assess overall plant efficiency is a global analysis. Additional work has recently been completed on a newly developed global model which answers this question and will be reported on in a future paper.