3rd Feb 2016 17:34
LONDON (Alliance News) - SSE PLC on Wednesday said it is proposing to end commercial operations at its coal-fired power station at Fiddler's Ferry in Cheshire after reviewing its options for the plant.
The energy company said all of the four units at Fiddler's Ferry failed to secure a capacity obligation agreement for delivery in the 2019/20 Capacity Market Auction which took place in December, raising further questions about their viability.
Under the current Capacity Market rules and regulations, SSE would be liable to make a payment of around GBP33 million if it decides to cease commercial operations before the end of a capacity obligation agreement for delivery in 2018/19.
But, SSE said ending operations would be consistent with its long-standing objective to transition its generation assets from a portfolio weighted towards gas and coal towards a portfolio more weighted towards gas and renewable sources of energy.
SSE said it will consult with employees and stakeholders on the matter, but expects to close three of the four units from April 1. It will discuss with each employee any options for future employment within the group in order to avoid or reduce the number of redundancies.
"The plant at the station is aging, its method of generating electricity is being rendered out of date and it has been, and is expected, to continue to be loss-making," Managing Director, Generation, Paul Smith said in a statement.
"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," he added.
Shares in SSE closed down 0.03% at 1,410.40 pence on Wednesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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