Power stations up for sale as holding company enters administration

Calon Energy Limited (CEL), the holding company of power producer Calon Energy Group, has slipped into administration.

Calon Energy Group employs 111 staff and operates a portfolio of three sites at Sutton Bridge, Lincolnshire, Severn Power Station in Newport and Baglan Bay Power Station in Port Talbot.

The firm also has planning approval to build a new Combined Cycle Gas Turbine at Willington in Derbyshire.

Jim Tucker and David Pike from KPMG’s restructuring practice have been appointed joint administrators.

The operating companies below CEL, which own and operate the Severn, Sutton Bridge and Baglan Bay power stations, are not in any insolvency process and continue to trade under the control of their respective directors and management teams. All members of staff remain employed and will continue to be paid as normal.

Tucker said: “Although we have been appointed administrators over the Topco to the group, the group’s power stations continue to operate as normal, outside any insolvency process, under the control of their directors. We will be working with the directors and senior management in the coming months to develop a new business plan for the power stations, before finalising the timeline to commence a sales process.”