Eggborough Power Station Management Considers Ceasing Power Generation

2. 9. 2015

Eggborough Power Limited (EPL), which operates the Eggborough Power Station, commenced consultation with employees. Depending on the outcome of the staff consultation exercise and any further talks with government bodies it may cease generating power at the end of March 2016.

“Even if that scenario materialised and the power station did actually discontinue its operations it would not have a negative effect on our opening balance as EPH. On the other hand, we are deeply convinced that the Eggborough Power Station has a significant positive role to play in ensuring security of supply in the UK electricity market, where generating capacities are lacking. Its decommissioning would have negative impacts on energy, fiscal and social aspects. Yet, as a result of a combination of market and regulatory conditions the power station’s continued operation in the years to come would not be financially viable, unless the regulatory framework changes”, Jan Špringl, Member of the Board of Energetický a průmyslový holding (EPH), said. EPH owns and controls Eggborough Power Limited.

A continued decline in power prices combined with a continued high carbon tax means that Eggborough Power Station will be unable to cover its future operating costs. Recent changes to Capacity Market rules in the UK have not improved the outlook either. The renewable subsidies system as it is means that a biomass conversion is not a viable option for the power station.

Along with its primary objective, i.e., to seek a solution that will make it possible to keep the power station running after March 2016 and so maintain jobs, the managements of EPL and of its parent, EPH, have been considering other external growth opportunities in the UK and contemplating the construction of a new generating capacity. For EPH the UK definitely remains a key development market in terms of power generation.

Eggborough Power Station is located in the County of North Yorkshire in the UK. Four hard coal fired units give the station a total installed electrical capacity of 2,000MW. The Eggborough power station covers about 4% of the UK’s total electricity demand. Currently some 300 employees work at the power station.