150 Jobs To Go As Rugeley Power Station Closes

8 February 2016, 19:27 | Updated: 8 February 2016, 19:34

150 jobs could go after it was announced a Staffordshire power plant will close in the summer.

A 150 jobs could go after it was annouced a Staffordshire power plant will close in the summer.

Coal-fired Rugeley Power Plant is run by the French company ENGIE who are blaming a deterioration in the UK market condition for coal.

It provide power for more than a million homes in the UK and the government say they will be able to fill the gap in supply before next winter.

A spokesman for the Department of Energy and Climate Change said: "We are clear that providing a secure supply of affordable energy for our families and businesses is non-negotiable.

"There will be no impact on this winter and action has already been taken to secure extra capacity for next winter. We will continue to work alongside National Grid and Ofgem to take whatever additional steps are necessary to protect our energy supply."

David Alcock, CEO of ENGIE's Energy Infrastructure division in the UK, said: "It is with deep regret that we have had to make this decision at Rugeley. Our priority now is to support the employees and help them through this period. We implemented a number of changes at Rugeley a year ago in order to help maintain operations at the site but a combination of falling prices and the impact of various market changes has now made this unviable.

"We will of course keep all options for the power station under review, and will maintain dialogue with all stakeholders as we proceed with the employee consultation process. I would personally like to thank everyone at Rugeley for their contribution to our business and for their loyal service to the Power Station."

On their website ENGIE released the following statement:

"ENGIE is today announcing that its 1,000 MW Rugeley Power Station in Staffordshire is expected to cease market operations in early summer 2016 due to the deterioration in market conditions for UK coal-fired power generation."

"This closure will potentially lead to the loss of 150 jobs, subject to the outcome of an employee consultation exercise, and any further discussions with government bodies. During the consultation period, ENGIE will seek to identify redeployment opportunities elsewhere across the business, in line with the Group?s ongoing commitment to employees. A number of ongoing roles are expected to be required to support decommissioning and redevelopment of the site.

"Unfortunately market conditions for UK coal plant have deteriorated rapidly in recent years, as a result of a continued fall in power prices on the back of commodity market decline, and increases in carbon costs. Under such conditions, there is no prospect of the power station recovering its future operating costs."