Scottish & Southern buys Fiddlers Ferry

Saturday 31 July 2004 00:00
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Scottish and Southern Energy has acquired two coal-fired power stations in a £250m deal that will help diversify its generation base.

Scottish and Southern Energy has acquired two coal-fired power stations in a £250m deal that will help diversify its generation base.

Analysts said the acquisition of Ferrybridge and Fiddlers Ferry power stations appeared to be agreed at a knock-down price. AEP, the US company which owned the plants, had invested £650m in the assets. However, operating the two plants alone did not give AEP the scale to compete in the electricity generating market. Scottish and Southern also has gas and hydro-generating stations.

Ferrybridge, a 1,995MW power station in West Yorkshire, was commissioned in 1966. Fiddlers Ferry is a 1,989MW power station in Cheshire, commissioned in 1971. Both "co-fire" fuels from renewable sources in order to displace fossil fuels. Ian Marchant, the chief executive of Scottish and Southern, said: "This allows us to manage our exposure to changes in commodity prices for fuel by balancing our existing gas portfolio with a coal portfolio. This will reinforce our ability to compete for industrial and commercial electricity customers."

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