Coal-fired power stations are in line to receive tens of millions of pounds of subsidies from consumers to stay open next winter after the government asked them to delay plans to close this year because of the energy crisis.
Ministers have requested that EDF, Drax and Uniper consider extending the life of coal plants that were due to shut in September because of fears of a Europe-wide gas shortage if Russian supplies are curtailed.
Talks have now begun with National Grid’s Electricity System Operator over how much the plants would need to be paid to remain available for back-up generation. It is understood that they are likely to require tens of millions of pounds to cover the costs of staying open, with these costs being levied on consumers’ energy bills.
Coal, the most polluting form of power generation, was Britain’s biggest source of electricity in 2013 but provided only 2 per cent of the mix last year. Gas provides the biggest share of electricity supplies, with only three power stations still burning coal in Britain.
EDF’s West Burton A plant in Nottinghamshire and the coal-fired units at Drax in Yorkshire are both due to shut in September. Uniper is also ready to close part of its Ratcliffe-on-Soar coal plant in Nottinghamshire in September with the rest to run until 2024, when the government plans to end coal generation as part of its climate strategy.
The Times revealed last month that the government was exploring whether the coal plants that are due to close this year could stay open. The units could generate electricity for about 4 million homes when running full tilt.
Kwasi Kwarteng, the business secretary, wrote to the chief executives of EDF, Drax and Uniper this month to ask if they could stay open, given the “perceived risk of disruption to Russian gas supplies to Europe”.
“Maintaining our remaining coal-fired stations would provide us with additional back-up security whilst we pursue more enduring solutions,” he wrote.
EDF, Drax and Uniper all confirmed they had received the request. A spokesman for EDF said that it had begun reducing staffing numbers and running down coal stocks at West Burton A. To keep the plant open next winter “a decision would be necessary in the coming weeks”, he warned.
Drax said it was looking “carefully” at the government’s request. The company yesterday emerged as a winner of the energy crisis as it said that profits would be at the top end of expectations because of higher prices for the electricity it generates from biomass, hydro-electric and pumped storage plants. Its coal units were also paid by National Grid ESO to fire up in January.
A spokeswoman for the government said: “In light of Russia’s illegal invasion of Ukraine, it is right that we explore a wide range of options to further bolster our energy security and domestic supply.”
She said the government remained committed to ending the use of coal power by October 2024.