Fri, 09 May 2014 | DIVISION SALE
Owner Centrica has placed the Langage power station, that sits on the edge of Plymouth, Devon, along with two others on the market.
The trio have been given a combined value of £500 million and are based at Langage, Humber and Killingholme, with a combined energy capacity of 2.7GW. They all operate on the open market, but with “low levels of utilisation”.
An interim business update from Centrica stated its aim is to release funds from its larger power stations and concentrate its investment into UK gas-fired power generation at smaller plants.
The decision comes after experiencing tough market conditions over the past 12 months both in Britain and overseas. It blamed lower energy usage due to mild weather in the UK, and extreme weather in the US leading to large one-off costs in the first quarter. Other contributing factors were the recent focus on the energy sector and increased competition for energy supply in the UK.
The construction of Langage, a combined-cycle power plant, was ordered by Centrica and expected to finish in early 2009, but it finally opened in March 2010 after problems with its internal pipework. The construction was estimated to have cost about £400 million.
Shares in Centrica fell three per cent after issuing its second profit warning in six months. It admitted it had lost 180,000 customers from its domestic business British Gas. Despite wholesale energy costs having dropped, the utility supplier raised its prices in the autumn, but intends not to increase its prices this year.
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