RJB secures jobs with Eastern deal
Saturday 15 November 1997
Eastern, Britain's fourth biggest electricity generator with a 10 per cent market share, has agreed to buy 4 million tonnes a year for three years from next April with an option to continue the agreement for a further two years.
However, the deal only covers about half Eastern's coal requirements and represents less coal than it is currently being supplied with by RJB.
There are fears that as many as seven of the company's pits may have to close next year if it fails to secure enough long-term contracts with the three big fossil fuel generators.
Under its existing contracts RJB supplies 30 million tonnes a year to Eastern, National Power and PowerGen and still needs to tie down deals covering 85 per cent of its output for electricity generation.
Eastern and RJB declined to comment on the price they had agreed but one report suggested the deal was worth pounds 600m over five years. Charles Kernot, the Paribas analyst, said: "It's a jolly good price ... not a bad deal, really." He added that the deal equated to around 125 pence a gigajoule, though this is likely to be a delivered price as opposed to a pithead price.
Delivery, he estimated, would reduce this by around 5 pence a gigajoule. Existing contracts inherited from government-owned British Coal are thought to be worth 150p a gigajoule, while the world market price is 100p-105p.
Eastern is part of the Energy Group, subject of an agreed bid by the US utility, PacifiCorp. The Monopolies and Mergers Commission report on the takeover is due to be delivered to the President of the Board of Trade Margaret Beckett next Friday.
- 1 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 2 I might be an MP, but that doesn't stop me fighting sexism with my breasts
- 3 Martha Stewart accuses Snoop Dogg of 'smoking for four hours' during Justin Bieber Roast
- 4 Google April Fools': company unveils backwards search engine and huggable digital assistant
- 5 April Fools' Day 2015: The best hoax news stories from around the internet
Martha Stewart accuses Snoop Dogg of 'smoking for four hours' during Justin Bieber Roast
April Fools' Day 2015: The best hoax news stories from around the internet
April Fools' Day 2015 live: The best pranks and fake stories from around the world
University of Cambridge: Remains of 1,300 scholars are found under building
Turkey power cut: Prime Minister says nationwide blackout could be caused by terrorists
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
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'
Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
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 ...