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Bad news on Killingholme closure

Thursday, June 18, 2015

Closure of Killingholme Power Station very bad news for 500 workers in supply chain operating and maintaining it says GMB.

New low carbon generating capacity is needed but we are watching a funding crisis develop around building new power stations in the UK says GMB.

GMB, the union for energy and engineering constructions workers, responded to the announcement by E.ON on 18th June that it is to close the Killingholme gas-fired power station. See notes to editors for copy of E.ON press release.

Phil Whitehurst, GMB National Officer for workers building and maintaining power stations, said "This is very bad news for the 500 workers and their families in the supply chain who operate, service and maintain what is a viable combined cycle gas turbine station that has years of life left in it.

New low carbon generating capacity is needed but we are watching a funding crisis develop around building new power stations in the UK.

We need a long term plan for energy in UK. Leaving it to the market won't work."

End

Contact: Gary Smith, GMB National Officer for energy 07710 618909 or Phil Whitehurst, GMB National Officer for construction 07968 338810 or GMB press office 07974 251 823 or 07921 289880

Notes to editors.

E.ON statement dated 8 June 2015.

E.ON confirms closure of Killingholme power station following a review triggered by confirmation the site will not be included in National Grid’s Supplemental Balancing Reserve (SBR) service

E.ON has today (THURS) announced it is to close the Killingholme gas-fired power station.

This decision follows a review undertaken after the company confirmed in March it was to stop ‘normal’ generation at the site by releasing Killingholme's 900MW of Transmission Entry Capacity (TEC) and more recently, National Grid confirmed it will not include the site in the Supplemental Balancing Reserve (SBR) service.

E.ON’s priority is to support colleagues affected by today’s announcement and it will continue to work with the team at Killingholme, who have been kept fully informed about the potential risk of closure in recent months.

Commenting on the disappointment felt at the site and across the company, Tony Cocker, Chief Executive of E.ON UK, said:

“My main priority is our colleagues at Killingholme and we will continue to do all we can to help them through this difficult and uncertain time. I would also like to thank everyone who has made a contribution to Killingholme throughout its lifetime – from the time the power station was a plan on a drawing board through to the team that will continue at the site in the months ahead to ensure it remains safe and secure.

“Ultimately, the decision to close the power station is not one we have taken lightly and, as our actions have shown, we have exhausted every possible option to try to keep the plant viable. The reality, however, is that market conditions for both gas-fired electricity generation and coal-fired are very challenging and in this particular case too big to overcome which has resulted in 900MW of generation capacity being permanently removed from the UK’s power network.”

Killingholme, which in addition to the recent SBR tender was also entered into the recent UK Capacity Market Auction but was unsuccessful, is a Combined Cycle Gas Turbine (CCGT) comprising two 450MW modules giving a total generation capacity of 900MW. Approximately 50 people in total are employed at the North Lincolnshire site.

Ends

For more information contact:

Scott Somerville (07889 771 804)

Victoria Blake (02476 181 304)

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