Owner set to pull the plug on power station

ENERGY giant SSE has warned of potential job cuts at its landmark Fiddler’s Ferry coal-fired power station.

The group said it plans to close three out of four units at the site which lies between Widnes, Runcorn and Warrington by  April 1.

The 45-year old plant employs currently 213 people and has been loss-making for two years and was forecast to continue losing money until 2020.

Renewable energy and cheap gas prices have made coal-fired power plants increasingly expensive to run. As a consquence SSE has entered into consultation with staff.

The power plant provides two gigawatts of power, to this region which is enough to supply around two million homes with electricity.

A fourth unit at the plant will remain open as it has a contract to provide power for the National Grid next winter.

Three months ago, the government announced the permanent closure of all coal-fired power plants by 2025 as part of plans to lower carbon emissions from the electricity sector.

Paul Smith, managing director of SSE’s generation business said: “Fiddler’s Ferry power station has made an important contribution to the UK’s energy supplies for over 45 years. Over that time the station has been maintained and operated by professional and committed teams of people, and we are very aware of the impact that the closure of three of the station’s units would have on our colleagues, their families, and the local community.  

“These facts alone have made it very difficult for us to decide to start consulting with our employees and their representatives on the future of the station.”

He added: “The reality is, however, that the plant at the station is aging, its method of generating electricity is being rendered out of date and it has been, and is expected, to continue to be loss-making.”

SSE said it would incur a penalty charge of around £33m for breaching a government supply contract by closing the units.

Mr Smith said: “The fact it makes more sense for SSE to contemplate making a substantial payment in lieu of the capacity agreement relating to Fiddler’s Ferry in 2018/19 demonstrates just how economically challenged Fiddler’s Ferry has become – its losses are unsustainable.”

Last month, SSE was unsuccessful in gaining a capacity contract for the power plant for the year 2019/20.

The likely closure of the Fiddler’s Ferry coal-fired power plant follows an announcement by SSE last May that it was closing down its Ferrybridge power station in Yorkshire  in March 2016.