Acquisition

RNS Number : 3821X

Scottish & Southern Energy PLC

13 August 2009

 



SCOTTISH AND SOUTHERN ENERGY PLC

ACQUISITION OF USKMOUTH POWER STATION

Scottish and Southern Energy plc ('SSE') has entered into an agreement with Welsh Power Group Limited to acquire Uskmouth Power Company Limited, the owner and operator of the 363MW (megawatt) Uskmouth coal-fired power station near Newport, South Wales for a total cash consideration of £27m (including cash and working capital balances). The acquisition takes SSE's total electricity generation portfolio past 11,000MW for the first time.

Uskmouth comprises three independent power generating units, each with 121MW of capacity. The power station dates from the 1960s and was substantially refurbished in 2000, including having flue gas desulphurisation (FGD) equipment fitted. It routinely operates on a two-shift basis to help meet shorter-term power requirements. It currently employs over 100 people, who will join SSE. 

Uskmouth represents a substantial, well-located site with good, established infrastructure and a highly-skilled workforce. SSE intends to examine a range of options to ensure it remains an important part of its electricity generation portfolio, including opportunities to develop new lower carbon generation assets alongside the existing generation assets.

In May 2009, SSE acquired Abernedd Power Company Limited ('Abernedd') from BP, and is awaiting the outcome of Abernedd's application for consent to construct and operate a new combined cycle gas turbine (CCGT) power station of up to 870MW on its brownfield site at Baglan Bay in South Wales.

SSE supplies electricity and gas to over one million customers in Wales through its SWALEC brand.

Ian Marchant, Chief Executive of SSE, said:

'It is generally accepted that the UK's current portfolio of coal-fired power stations still have a crucial role to play in keeping the country's lights on and Uskmouth has the flexibility to help meet demand for power over the next few years.

'We are still focusing on our target of reducing the carbon intensity of our power generation by 50% between 2006 and 2020, and Uskmouth will have a role to play in this, since it also provides an opportunity to develop a new lower carbon generation asset on the site. We intend to examine a range of options, but each one will ensure Uskmouth remains an important part of our electricity generation portfolio in the coming years.' 

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