London Jan 2 – London Electricity Group plc (LE Group) said Monday it had completed the acquisition of the West Burton coal-fired power station in Nottinghamshire. The necessary regulatory approval has been granted and the station has now transferred over to L E Group from previous owners TXU.
The station will be managed by a subsidiary company, the London Power Company (LPC), which has responsibility for the Group’s generation assets.
West Burton power station is a 2000 MW plant which was commissioned in April 1969 and has 233 employees. It joins nearby Cottam power station as one of the largest stations in LPC’s portfolio. LPC’s other generation interests include Sutton Bridge power station in Lincolnshire a 790 MW CCGT (combined cycle gas turbine plant) and a 13.5 per cent share in a 1000MW CCGT power station in Barking, Essex.
Bruno Lescoeur, Chairman and Chief Executive of LE Group, welcomed the completion of the deal. He said, “We are delighted to have added West Burton to our generation business. LE Group believes that a successful energy company in the UK needs to have a balanced presence throughout the energy chain. The completion of the purchase provides the group with a valuable and flexible addition to its generation portfolio”.
LE Group paid à¯¿½366m for West Burton plus $60m it has agreed to pay to TXU for its contribution to the installation of flue gas desulphurisation (FGD) plant at the site already underway. The transaction also includes a long-term contract for TXU to supply the station with coal.
West Burton Power Station comprises two 483 MW and two 503 MW rated coal fired generating sets. It also has two 20 MW gas turbines. The FGD system currently being fitted, will serve all four coal fired units.
Since 1998, LE Power has been owned by Electricità¯¿½e France and has been actively expanding its UK generation business on behalf of its parent company. West Burton is one of a number of UK power stations bought by US energy companies following privatization which are now being sold as overseas investors following a reappraisal of prospects in the UK market under Neta.