Uskmouth, Newport power station to close generator
11:10am Friday 22nd March 2013 in News
USKMOUTH’S coal-fired power station is to close one of its three generators with the loss of 20 jobs.
Scottish and Southern Energy (SSE) said this would reduce the station’s generation capacity from 360MW to 240MW. A further review of the operation of the power station will be undertaken early next year.
The firm said it took the decision because the site will make a loss this financial year, partly because of the introduction of the Carbon Price Floor and the removal of free CO2 emission allowances.
This action, coupled with recent improvements in market conditions and plant productivity, suggests Uskmouth would be able to operate profitably in the coming financial year, the company said.
The job cuts will reduce the workforce to 85, but the firm said it would try to redeploy all employees to its other sites in South Wales.
It also expects to meet part of the reduction through voluntary means such as early retirement, and has already begun discussions with employees and trade unions.
Uskmouth Power Station manager Chris Lloyd said: “The market conditions and regulatory environment for thermal generation have become increasingly challenging, but by making this change today, we have effectively secured the operation of the station for the next 12 months.
“Any decision that impacts on people is never an easy one to make, particularly given the recent efforts of the whole team at Uskmouth to improve the efficiency and productivity of the plant. I am therefore pleased that we will be able to retain many of the people affected through redeployment to other roles and that any job losses will be kept to a minimum.”
“The review in early 2014 will assess this environment and allow us to make an informed decision on the long-term viability of the station.”