Power stations holding company goes into administration

THE holding company behind two gas-fired power stations in Wales has gone into administration.

Jim Tucker and David Pike from KPMG’s restructuring practice have been appointed joint administrators of Calon Energy Limited (CEL), the holding company of Calong Energy Group.

Calon Energy Group has a 2.3 gigawatt combined cycle turbine (CCGT) portfolio operating across three sites, which will be put up for sale.

Headquartered at Severn Power Station, in Newport, the group employs approximately 111 staff.

It also holds the relevant consents to construct a new CCGT project in Derbyshire.

The operating companies below CEL, which own and operate the Severn, Sutton Bridge, in Lincolnshire and Baglan Bay plant in Port Talbot, power stations, are not in any insolvency process and continue to trade under the control of their respective directors and management teams.

All members of staff remain employed and will continue to be paid as normal.

Jim Tucker, restructuring partner at KPMG and joint administrator, said: “Although we have been appointed administrators over the Topco to the group, the group’s power stations continue to operate as normal, outside any insolvency process, under the control of their directors.

“We will be working with the directors and senior management in the coming months to develop a new business plan for the power stations, before finalising the timeline to commence a sales process.”