Energy giant SSE (formerly Scottish and Southern Energy plc) told staff and unions this afternoon that it is talking to the Department of Energy and Climate Change and National Grid about the future of the loss-making plant. 

The 2GW plant near Widnes produces enough electricity to power two million homes. One of the four units at Fiddler's Ferry has a contract with National Grid to provide back-up power for next winter, but the future of the other three could be in doubt.

SSE also secured a subsidy contract with the government in 2014 to guarantee that three of the plant’s four units would be available to generate power in 2018-19.

But SSE’s failure to secure further contracts during the recent capacity auction has raised doubts over whether the payments would be enough to outweigh £20-25m the plant is losing every year because of low energy prices and the UK’s carbon tax. 

SSE faces a penalty if it fails to deliver, but the company may take a £35m hit in order to avoid greater operating losses. The commitment to end coal-fired generation by 2025 means the company will not have a long-term opportunity to re coup its losses.

Speaking on behalf of 21,000 scientists, engineers, managers and other professionals in the energy sector, Prospect negotiator Michael Macdonald said: “Today’s news means the loss of 220 highly-skilled jobs at the station and the equivalent number among local contractors.

“This will have a devastating impact on an area. It also exacerbates difficulties in keeping the lights on given the way the energy market is incentivised and the loss of Ferrybridge, Eggborough and Longannet in Scotland.

“This is yet more evidence of the need for a rapid rethink of UK energy policy. Capacity auction results so far have seen large thermal generation lose out. We are losing the jobs and key skills that we will need for future generation.”

Macdonald said Prospect is calling for:

• an urgent review of carbon taxes and future capacity payments to create an incentive to invest in clean coal technology
• an energy transition plan that retains a balanced energy policy, enables investors to plan the transition to a low-carbon economy and ensures workers develop the high-tech skills needed for future energy needs 
• further investment in energy research and development to enable the commercial deployment of clean coal.

Ends

For further information contact:

Michael Macdonald   01924 207890 (w)   07770 304486 (m)    [email protected]

Katherine Beirne   020 7902 6625 (w)   07753 933174 (m)    [email protected]