240 jobs at risk as power station threatens closure

EAST YORKSHIRE power station Eggborough may stop burning coal in six months’ time with the loss of 240 jobs unless it receives Government support, the company has announced.
In January 2014 the company ended plans to convert to biomass and said then “the most likely outcome now is that Eggborough will no longer be supplying electricity to the grid beyond 2015”.
However last November Eggborough Power was bought by Czech energy group EPH and its new owners declared the deal “reflects our genuine interest in the UK market”.
But just six months after EPH took control of Eggborough’s board, the company has again announced the plant may stop generating power “depending on the outcome of a staff consultation exercise and any further talks with government bodies”.
The company, which paid £50m to shareholders during its 2014 financial year, said it needs around £200m in additional funding over the next three years to be able to continue.
Neil O’Hara, chief executive of Eggborough Power Ltd, said: “We are deeply saddened at the prospect of potentially ceasing generation at Eggborough Power Station and believe that Eggborough Power could have a significant part to play in ensuring security of supply in the UK electricity market, particularly while there remains great uncertainty around new-build gas-fired generation.
“We intend to conduct a thorough consultation process with our employees and their representatives while we continue to consider all options available to us, including seeking to engage with government bodies.”
It blamed a number of factors for Eggborough’s “unsustainable financial position” including the continued fall in power prices caused by declining commodity prices and the “high” carbon tax, as well as recent regulatory changes affecting funding and subsidies.
The company said it had been working with the Department for Energy and Climate Change, the Environment Agency, National Grid and Ofgem to address the challenges and will continue to “seek to engage with government bodies” as it considers its options.

Separately, Drax launched a legal challenge against a policy change announced in the Chancellor’s summer Budget which is expected to cost the power station operator £90m by the end of 2016.

Close