Drax Group (LSE:DRX) and EDF Energy have confirmed they will not keep the UK’s back-up coal power plants open next winter, citing staffing and engineering issues.
National Grid's ESO operating wing said it had received a letter from the government’s energy security department to look into back-up power for next winter, though Drax and EDF, which operate the contingency plants, were both quick to respond with a "no".
“Following this request, we will be negotiating with market participants to secure additional non gas-fired capacity over the next winter that would otherwise not have been available,” the ESO said.
EDF said it would be closing its West Burton A coal plant as planned on March 31, adding “we owe it to the people who work there,” half of whom are set to retire this year.
Drax said certifications were set to expire for its coal units at its power station in North Yorkshire, meaning they could “not operate compliantly” next year.
The pair agreed to keep five coal units from being decommissioned this winter, as part of a deal with the ESO to bolster the UK’s back-up energy supply.
Set to cost £420mln, the deal has seen two of the five stations used to supply the grid just once, although the plants have been warmed on several occasions due to cold snaps and increased demand overseas.
A government spokesperson reassured the UK’s supply was “safe and secure,” reiterating additional capacity was a “contingency measure”.
“Ultimately, the decision will be a commercial one for the coal generators,” they added.