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Aerial image of Rugeley Power Station
Aerial image of Rugeley Power Station
Each tower under optimum conditions is capable of cooling 454,000 litres of water per minute by 10°C
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There are appromiately 630 rungs on the ladder to the top of the chimney and it would take around 30 minutes to climb!

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Rugeley Power Station expected to cease operations this summer

8th February 2016

ENGIE is today announcing that its 1,000 MW Rugeley Power Station in Staffordshire is expected to cease market operations in early summer 2016 due to the deterioration in market conditions for UK coal-fired power generation.

This closure will potentially lead to the loss of 150 jobs, subject to the outcome of an employee consultation exercise, and any further discussions with government bodies. During the consultation period, ENGIE will seek to identify redeployment opportunities elsewhere across the business, in line with the Group’s ongoing commitment to employees. A number of ongoing roles are expected to be required to support decommissioning and redevelopment of the site.

Unfortunately market conditions for UK coal plant have deteriorated rapidly in recent years, as a result of a continued fall in power prices on the back of commodity market decline, and increases in carbon costs. Under such conditions, there is no prospect of the power station recovering its future operating costs.

ENGIE remains one of the UK’s largest independent power producers and will continue to invest in its energy and services capabilities as a long-term committed partner for the UK.

David Alcock, CEO of ENGIE’s Energy Infrastructure division in the UK, said: “It is with deep regret that we have had to make this decision at Rugeley. Our priority now is to support the employees and help them through this period. We implemented a number of changes at Rugeley a year ago in order to help maintain operations at the site but a combination of falling prices and the impact of various market changes has now made this unviable.

“We will of course keep all options for the power station under review, and will maintain dialogue with all stakeholders as we proceed with the employee consultation process. I would personally like to thank everyone at Rugeley for their contribution to our business and for their loyal service to the Power Station.”

Notes: Rugeley Power Station is jointly owned by ENGIE (75%) and Mitsui & Co. Ltd. (25%). It can provide enough electricity to power 1 million homes and is one of the most flexible and efficient coal-fired stations in the UK.

The Station is also known as Rugeley “B” and has been in operation since 1970. Rugeley “A” station, built on the same site back in the 1950s, was decommissioned in 1996.

Contact details: Tulchan Martin Robinson Siobhan Weaver +44 (0)20 7353 4200

Sally McPartlin
ENGIE Communications Director +44 (0)20 7320 8678

About ENGIE in the UK

ENGIE (formerly GDF SUEZ) is a leading energy and services Group employing 20,000 people in the UK. ENGIE is using its energy and services capabilities to lead the UK’s transition towards a more secure and sustainable future, through a strategy based on investment in critical energy infrastructure, integration of its energy expertise with its broad services offer, and innovation in customer-led solutions and technologies. The business has well-established and diverse operations that span the exploration and production of gas and oil; on-shore gas storage; generating power as one of the UK’s largest independent power producers; providing power and gas to thousands of UK businesses; and delivering services to more than 14,000 customer sites across the public and private sector.

Globally, ENGIE’s businesses are developed around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy. The Group employs 152,900 people worldwide and achieved revenues of €74.7 billion in 2014. It is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the FTSE Euro top 100.