Power firm 'committed' to Deeside

The company says no jobs will be lost in the cutbacks

International Power (IP) has stressed its commitment to the future of its Deeside power plant, following an announcement it will cut capacity by half on Monday.

The company, which employs 50 people on the Deeside Industrial Estate, has insisted no jobs will be lost by the move.

The reason for keeping all our staff is that we value them very highly

Spokesperson for the company

The cutbacks have been blamed on the weakening wholesale price of electricity and a general overcapacity in production.

A spokesperson said: "The decision is nothing to do with the plant or the workers, but entirely to do with the market."

IP's gas-fired power station in Deeside was singled out last year by the company for its strong performance.

The spokesperson added: "The situation is beyond our control and we would definitely like full production to resume at Deeside.

"The reason for keeping all our staff is that we value them very highly."

A unit at the station will be mothballed

Workers were told on Thursday the company would halve its 500 megawatt output at Deeside from 1 April.

Part of the Deeside unit will be mothballed until market conditions alter.

At the time of the announcement chief executive Peter Giller said: "Current wholesale prices in the UK are uneconomic for running both units at Deeside, which is a modern, efficient and clean burning power station.

"We will reinstate the mothballed unit only when market conditions improve to support sound financial operation."

Plant praised

Rising gas prices are also partly blamed for the drop in demand for power supplies.

Environmentalists fear if the trend continues electricity business customers could switch to older, coal-fired power stations, resulting in a rise in CO2 emissions.

The Deeside plant last year contributed to a 22% boost in profits for IP, earning the north Wales unit praise from the company's chairman Sir Neville Sims.