US firm lines up for generating plant
Monday 21 August 1995
The UK firm is also thought to be talking to regional electricity firms, including Eastern Electricity and Southern Electric, and with an overseas group.
National Power and PowerGen were told last year by the electricity regulator, Offer, to dispose of 4,000 megawatts and 2,000 megawatts of generating capacity respectively - the equivalent of three very large power plants. Offer, which hopes the disposal will boost competition in generation, has threatened to refer the companies to the Monopolies and Mergers Commission if they fail to meet the deadline of the end of this year.
The companies have dragged their feet over the issue, arguing that they must get best possible value for shareholders and railing against being forced to sell market share. But recently the regulator eased the rules by suggesting that they might be able to lease the plants and be paid some sort of royalties on the power produced by the new operators.
At one point PowerGen was looking at asset swaps with overseas firms rather than a sale, but this is not now thought to be priority. National Power has confirmed that it is in negotiations with "several groups" but has declined to comment further on any disposals, which could raise pounds 1bn for the company.
Eastern Electricity is thought to even more keen to buy power stations following the proposals by Hanson, the industrial conglomerate, for an agreed pounds 2.5bn bid for the regional firm. Hanson is supportive of Eastern's diversification into generation and would also like to exploit its UK experience in power projects overseas.
Southern Electric was bidding for plants in conjunction with Southern Electric International of the US. But the state of the relationship is unclear since SEI launched its pounds 1bn bid for South Western Electricity. Southern of the UK subsequently held abortive talks with neighbouring SWEB on the possibility of becoming a "white knight".
Royal Marine Sgt Alexander Blackman jailed for life for murder of Afghan insurgent
Ja Rule forced to deny leaving wife for prison cell mate
Nelson Mandela: 11 inspirational quotes to live your life by
Nelson Mandela's death: South Africa and the world mourns loss of Nelson Mandela
Crash pilot who threatened Ukip leader Nigel Farage found dead
- 1 Cameron's freebie to apartheid South Africa
- 2 Is this the scariest advert ever? Japanese tyre commercial comes with its own disclaimer and health warning
- 3 Sherlock series 3: Benedict Cumberbatch and Martin Freeman provide teasers for the biggest comeback in British television
- 4 A forgotten episode in Russian history leaves links with the Philippines
- 5 People will try to reduce Mandela to a lilting reggae tune about ‘love’. They will fail
- < Previous
- Next >
iJobs Money & Business
£30000 - £40000 per annum + Bonus and Benefits: Harrington Starr: A global Con...
£150 - £250 per day: Cornwallis Elt : iPhone Rollout- Blackberry Enginee...
£55000 - £70000 per annum: Pro-Recruitment Group: A well-known and renowned in...
£450 - £500 per hour: Cornwallis Elt : Business Analyst Finance System Hy...