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Thursday, 28 March, 2002, 13:32 GMT
Power plant to halve output
Deeside power station
A unit at Deeside power station will be mothballed
International Power (IP) has announced it will cut capacity at its north Wales plant by half.

The company said the decision had been forced by the weakening wholesale price of electricity to customers in England and Wales and a general overcapacity in production.

IP's gas-fired power station employs 50 workers at Deeside Industrial Estate and the plant was singled out last year by the company for its strong performance.

The move will not result in job losses.


We will reinstate the mothballed unit only when market conditions improve

Peter Giller, IP chief executive
Workers were told on Thursday that the company would halve its 500 megawatt output at Deeside from Monday, 1 April.

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

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."

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

Plant praised

If that trend continues, than electricity business customers could switch to older, coal-fired power stations, resulting in a rise in CO2 emissions, environmentalists fear.

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.

Meanwhile, rival energy firm TXU announced earlier this week that it was closing units this summer at its coal-fired stations at High Marnham, Nottinghamshire, and Drakelow in Staffordshire.


More news from north east Wales
See also:

19 Mar 02 | Business
UK power group's profits jump
11 Feb 01 | Business
UK generator eyes California move
25 Nov 98 | The Company File
Power to the people
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