THE closure of Eggborough Power Station is once again looming with the loss of around 240 jobs as the site is given just six months before generation ceases.

Eggborough Power Ltd announced yesterday it has started consultation with its employees over plans to close the plant at the end of March next year.

The firm said it is "financially unsustainable" to continue operating the plant as it needs to find around £200 million of addition funding over the next three years to continue generating power.

Following the announcement union Unite has warned the loss of electricity to the National Grid could lead to power cuts during harsh winters, and is urging the Government to investigate the impact of the closure.

The 53-year-old power station, near Selby, has faced a turbulent two years after the risk of closure first arose in 2013 when plans to convert it from burning coal to biomass were dealt a shattering blow as the Government decided not to fund the conversion project.

However when Czech energy company Energetický a průmyslový holding (EPH) agreed to buy Eggborough Power Station in November last year, the future of the station appeared to be secured.

The sales of the 2GW coal-fired power station,which supplies about four per cent of electricity in the UK, equivalent to powering about three million homes, marked EPH’s first acquisition in, and entry into, the UK market.

Yesterday however the power plant's owners revealed it had taken "the difficult decision over the potential cessation of power generation."

Neil O’Hara, chief executive of Eggborough Power Ltd, said: "We are deeply saddened at the prospect of potentially ceasing generation at Eggborough Power Station and believe that Eggborough Power could have a significant part to play in ensuring security of supply in the UK electricity market, particularly while there remains great uncertainty around new-build gas-fired generation.

"We intend to conduct a thorough consultation process with our employees and their representatives while we continue to consider all options available to us, including seeking to engage with government bodies. Our priority is to support our staff during this difficult time."

Bosses have attributed the plant's unsustainable financial position to a combination of market and regulatory conditions, including a continued fall in power prices driven by the decline in commodity prices, combined with continued high carbon tax, meaning Eggborough is unable to cover its future operating costs.

Selby MP Nigel Adams said: "It's devastating news. For the last two years I have been working closely with Eggborough senior management and Government to try and find a way forward to keep the station operating for a leat ten years.

"It appears the new owners have decided time has run out for them.

"It is a huge blow, not just for the area, but for the highly skilled people that work there.

"We have been here before and I'm very angry nothing has been stop this situation happening again."

Unite says the loss of 240 jobs at Eggborough, plus the 200 associated contract workers will bring total job cuts in the region's power industry to around 1,000 as Ferrybridge C power station is also set to shut next March, along with the closure of Kellingley Colliery.

Unite regional officer Kelvin Mawer said: "What has happened to the coal-based energy sector in Yorkshire in recent months is devastating to those losing their jobs and a crippling blow to the local economy.

"Energy secretary Amber Rudd should take a long, hard look at the energy needs of the country. Coal is the cheapest form of energy, especially if the carbon tax was lowered. Britain is sitting on a huge reservoir of coal.

"By closing Eggborough and Ferrybridge C, you are reducing their contribution to the grid by about eight per cent, enough to power about four million homes. If there is a harsh winter this year, we believe that energy demands will be so stretched, power cuts could be on the cards."

Unite says it is meeting the Eggborough management next Tuesday with the aim of exploring avenues that may keep the power station open.

Mr O'Hara said: "The decision to commence consultation has not been taken lightly.

"Eggborough has a proud history of generation and a dedicated and skilled workforce. We will work through the consultation with employee representatives and provide support to employees throughout this process."