Jobs at risk as Sutton Bridge Power Station put ‘in a dormant state’

Sutton Bridge Power Station has been placed ‘in a dormant state’ after its operators went into administration.

Staff at the plant, which was only upgraded in 2017, face an uncertain future after owner Calon Energy Limited went into administration June.

On Monday administrators KPMG yesterday (Monday) announced that they will be overseeing Calon companies include Severn Power Limited, Calon Energy (Severn) Limited, Sutton Bridge Power Generation, Sutton Bridge Power Systems (London) Limited and Calon Energy (Sutton Bridge) Limited.

They also announced that Sutton Bridge and Severn Power Station in Newport, Wales would be put in a dormant state.

KPMG say the two sites combined have 68 staff.

The company’s third power station at Baglan Bay in Wales will continue to operate as normal.

Jim Tucker, restructuring partner at KPMG and joint administrator, said: “Following the appointment of administrators over Calon Energy Limited, the group’s Topco, on June 24, CEL’s administrators have worked closely with the senior management team and key stakeholders to consider a number of options in relation to CEL’s operating subsidiaries.

“The recent and ongoing challenges facing the UK power market mean that these power stations are currently not generating sufficient returns to continue trading effectively.

“It has therefore been determined that the power plants will be placed into a safe and dormant state of managed preservation to provide more time to explore all options in order to recover value for the group’s creditors.”

Sutton Bridge Power Station cost a reported £337m to build and began operation in May 1999.

It is a gas powered Combined Cycle Gas Turbine (CCGT) which has a maximum capacity of 850MW following the 2017 upgrade, comprising of two gas turbines and one steam turbine operating in a multi shaft configuration, Calon’s website states.

The station was constructed for Enron before being purchased by EDF Energy in 2000, It was acquired by MPF Holdings Limited (now Calon Energy) in March 2013.