Administrators have mothballed a Lincolnshire power plant, which will be among two placed into a “safe and dormant state” after the company operating it went into financial collapse.
KPMG took over the holding company Topco of Calon Energy Limited on June 24, 2020.
The operating companies for Severn Power Station in Newport and Sutton Bridge Power Station, which employ 68 staff combined, called the administrators in.
Being placed in a dormant state will allow administrators more time to recover costs for creditors.
Newport-based Calon Energy Group is an Independent Power Producer in the UK, with a 2.3GW Combined Cycle Gas Turbine portfolio operating across three sites – Severn Power Station, Newport, Sutton Bridge Power Station, Sutton Bridge, and Baglan Bay Power Station, Port Talbot.
The Lincolnshire plant started commercial operation in May 1999.
Jim Tucker, restructuring partner at KPMG and joint administrator, said: “The recent and ongoing challenges facing the UK power market mean that these power stations are currently not generating sufficient returns to continue trading effectively.
“It has therefore been determined that the power plants will be placed into a safe and dormant state of managed preservation to provide more time to explore all options in order to recover value for the group’s creditors.”