PowerGen expands overseas
Friday 23 May 1997
Its larger rival, National Power, has also redoubled efforts to expand internationally after the two generators were blocked last year from bidding for RECs by the Monopolies and Mergers Commission.
National Power last week signalled it had no interest in renewing its interest in a REC by selling its stake in Southern Electric, built during last year's abortive bid. But Ed Wallis, PowerGen's chairman, said: "If a REC comes up and the window of opportunity to buy it without regulatory interference is there we would consider it seriously.
He stressed, however, that PowerGen's strategy of tapping into the electricity supply market in readiness for the opening up of the domestic market in 1998 was progressing well without the need to buy a REC.
Deryk King, managing director, said that PowerGen had signed heads of agreement to enter long-term supply arrangements with several RECs and planned to sign contracts with several of them in the next few months.
He also said that PowerGen was negotiating a new set of coal contracts with RJB Mining, the owner of the English coalfields, at significantly lower prices than those in its current contracts, which also end next year. He said that about one-third of PowerGen's output would be covered through partnership deals with RECs.
He was speaking as PowerGen announced a modest rise in pre-tax profits last year to pounds 575m but warned that increased competition in the UK electricity market would put greater pressure on margins this year.
PowerGen is taking a 40 per cent stake in a pounds 400m coal-fired plant to be built in Indonesia and a 30 per cent stake in a pounds 875m coal-fired station in Thailand. The two projects will increase PowerGen's investment in overseas power stations to pounds 700m and give it interests in 7,700 megawatts of generating capacity.
Mr King said that within five years, total output from overseas power stations in which PowerGen has an interest would be the same as its UK generating capacity.
Mr Wallis refused to comment on Labour's windfall tax other than to confirm that PowerGen had passed a submission to the Treasury setting out its case to be excluded. Mr Wallis is expected to meet John Battle, the new Energy Minister, in the next few weeks.
- 1 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 2 Google April Fools': company unveils backwards search engine and huggable digital assistant
- 3 I might be an MP, but that doesn't stop me fighting sexism with my breasts
- 4 April Fools' Day 2015: The best hoax news stories from around the internet
- 5 Gamers confess the worst things they've done in The Sims
Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
Katie Hopkins reported to the police for race hatred by Labour MP Simon Danczuk after tweet about Pakistani men
iJobs Money & Business
£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...
£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...