Energy prices ‘up 10%’ if Eggborough power station shuts

York Press: Eggborough power station Eggborough power station

THE closure of a North Yorkshire power plant could see energy prices rise by more than ten per cent, operators have claimed.

Eggborough power station currently produces about four per cent of the country’s power, and had hoped to move into biomass production – burning wood pellets instead of coal - which would produce much greener energy.

However, as The Press reported yesterday, Government subsidies which would allow the power station to make the necessary changes may now be given to wind-power facilities instead. A final decision is expected later this week.

A document shown to The Press includes the other projects which are competing for the subsidies, and shows that several of the projects do not yet have planning permission in place, unlike the North Yorkshire plant.

An Eggborough spokeswoman said this could push up wholesale prices by up to ten per cent. Should the station close, filling the gap Eggborough would leave with renewable technologies could mean the average energy price for consumers would increase by up to £38.

She said: “Many of the other projects on the list do not appear to be in a similar state of readiness.

“Falling capacity gap and meeting renewables targets with more costly technologies will result in a spike in consumer bills which is entirely avoidable.”

The decision could also mean the plant may have to close, at the cost of 800 jobs. Selby and Ainsty MP Nigel Adams has urged MPs to back a campaign to ensure the funding goes to Eggborough.

Mark Crane, leader of Selby District Council, said the announcement was not good news for the region, and he hoped the subsidies would still go to the biomass project.

He said: “On the back of last week’s very good news with the investment at Drax, the news coming out of Eggborough and the Government is worrying to say the least.

“I would add my support to Nigel Adams’s campaign to ensure the Government continues to invest in biomass and other renewables, rather than continually looking at wind.”

Hugh Bayley, MP for York Central, said he had not been asked to sign Mr Adams’ letter, but supported it wholly.

He said: “The Eggborough conversion seems a cost-effective way of generating power renewably so I hope the Government will reinstate this project.

“Nigel Adams is right to call on the Government to think again. We need to generate more electricity renewably and the Government should be converting coal-fired power stations to biomass as well as generating more power from offshore wind farms.”

Earlier this year it was rumoured that an energy firm based in Asia was interested in investing in the Eggborough plant, in a move that would help fund the £500 million biomass conversion. The spokeswoman said she was unable to comment on the potential investment.

Comments (6)

Please log in to enable comment sorting

11:00am Tue 17 Dec 13

Brighouse Lad says...

I don't know if prices will go up 10 percent or not, lots of coal plants are closing or due to close. What I find worrying is that the government is letting this happen when clearly the UK hasn't got anything in place that will replace these stations when they close. I think I will start buying candles!!
I don't know if prices will go up 10 percent or not, lots of coal plants are closing or due to close. What I find worrying is that the government is letting this happen when clearly the UK hasn't got anything in place that will replace these stations when they close. I think I will start buying candles!! Brighouse Lad

2:28pm Tue 17 Dec 13

ColdAsChristmas says...

Here we go again with yet another foreign investor interested.
If all coal plants changed to biomass the world would run out of trees in Months.

The point is that Eggborough uses coal as fuel, there is plenty of it and this plant produces 4% of the nations electricity. So, sustainability isn't an issue, certainly in the foreseeable future.

But, I don't believe for a moment that it would make any difference if the energy price rise was 100% if these silly politicians were not moving towards their mad carbon targets and satisfying their carbon phobia.

Eggborough isn't broken and yet here are these idiots and I don't just mean the local politicians wanting to threaten 800 jobs by not demanding the plant stay as it is.

I have my candles and torch to hand and if left to this lot we will need them sooner rather than later. Mad, mad, mad!
Here we go again with yet another foreign investor interested. If all coal plants changed to biomass the world would run out of trees in Months. The point is that Eggborough uses coal as fuel, there is plenty of it and this plant produces 4% of the nations electricity. So, sustainability isn't an issue, certainly in the foreseeable future. But, I don't believe for a moment that it would make any difference if the energy price rise was 100% if these silly politicians were not moving towards their mad carbon targets and satisfying their carbon phobia. Eggborough isn't broken and yet here are these idiots and I don't just mean the local politicians wanting to threaten 800 jobs by not demanding the plant stay as it is. I have my candles and torch to hand and if left to this lot we will need them sooner rather than later. Mad, mad, mad! ColdAsChristmas

2:31pm Tue 17 Dec 13

Fat Harry says...

It irritates me that we the public are subsidising these private firms to the hilt, yet have no say in how our money is showered over these profiteers.

If they can't make a profit without having our hard-earned cash stuffed into their back pockets, they should hand back the keys.

Directly Operated Railways have made an excellent job of running the East Coast rail line, so maybe it's time we set up Directly Operated Power Stations as well.
It irritates me that we the public are subsidising these private firms to the hilt, yet have no say in how our money is showered over these profiteers. If they can't make a profit without having our hard-earned cash stuffed into their back pockets, they should hand back the keys. Directly Operated Railways have made an excellent job of running the East Coast rail line, so maybe it's time we set up Directly Operated Power Stations as well. Fat Harry

3:32pm Tue 17 Dec 13

Kevin Turvey says...

‘Fat Harry says...
Directly Operated Railways have made an excellent job of running the East Coast rail line, so maybe it's time we set up Directly Operated Power Stations as well.’

Despite East Coast Trains doing a great job in that regard and actually making money for the public purse the political puppets and their real masters the money men will soon have that sorted out in the private world claiming subsidies from the taxpayer.

In their minds why should the Tax Payer be rewarded when it could be them?

Can’t have common sense overcoming the so called free market can we!


A directly operated Power Station sounds a good idea.
A bit like a Co-op or perhaps nationalised?

Along with a direct operated local coal supply that is not at the end of a long international logistics chain as well.

If it is economic to move coal from the USA/Germany/Poland and Oz to Yorkshire for burning it must be economic to mine it here and transport locally as well.

If it is not pure economics but politics, money, control and power forcing this then its way past time for a change in the political system at home to benefit the population of the UK as a whole.

I can visualize somebody sharpening the guillotine even as we speak!
‘Fat Harry says... Directly Operated Railways have made an excellent job of running the East Coast rail line, so maybe it's time we set up Directly Operated Power Stations as well.’ Despite East Coast Trains doing a great job in that regard and actually making money for the public purse the political puppets and their real masters the money men will soon have that sorted out in the private world claiming subsidies from the taxpayer. In their minds why should the Tax Payer be rewarded when it could be them? Can’t have common sense overcoming the so called free market can we! A directly operated Power Station sounds a good idea. A bit like a Co-op or perhaps nationalised? Along with a direct operated local coal supply that is not at the end of a long international logistics chain as well. If it is economic to move coal from the USA/Germany/Poland and Oz to Yorkshire for burning it must be economic to mine it here and transport locally as well. If it is not pure economics but politics, money, control and power forcing this then its way past time for a change in the political system at home to benefit the population of the UK as a whole. I can visualize somebody sharpening the guillotine even as we speak! Kevin Turvey

6:07pm Tue 17 Dec 13

Alf Garnett says...

Nationalise them. These are public assets, not instruments of private wealth accumulation. How ridiculous that so many of our former state utilities and transport assets are now owned by foreign state utilities and transport enterprises. Funny how the word Socialism doesn't feel quite so retro anymore.
Nationalise them. These are public assets, not instruments of private wealth accumulation. How ridiculous that so many of our former state utilities and transport assets are now owned by foreign state utilities and transport enterprises. Funny how the word Socialism doesn't feel quite so retro anymore. Alf Garnett

2:32am Wed 18 Dec 13

Magicman! says...

The Eggborough issue has nothing to do with it being owned privately... it is to do with beaurocrats at the EU finding a way to get more money from the UK... "oh look they still burn coal, let's put a tax on every megawatt they generate by burning coal, and we'll just attach the tax to the whole 'climate' thing we got going on, people still believe that's a thing and so won't question the carbon tax".
The Eggborough issue has nothing to do with it being owned privately... it is to do with beaurocrats at the EU finding a way to get more money from the UK... "oh look they still burn coal, let's put a tax on every megawatt they generate by burning coal, and we'll just attach the tax to the whole 'climate' thing we got going on, people still believe that's a thing and so won't question the carbon tax". Magicman!

Comments are closed on this article.

click2find

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree