Closure of coalfired plants casts doubt on energy plans

EDF and Drax have confirmed plans to shut two British coal-fired power plants by the end of the month, throwing the Government’s winter energy security plans into doubt.

Both Drax and EDF said they intended to press ahead with the closure as part of the national push towards cleaner energy. It comes despite a lastminute request to keep them open from Grant Shapps, the Energy Secretary, who has said it would be “crazy” not to have the plants on standby for back-up power supplies next winter.

EDF’S coal plant was needed last week to help shore up electricity supplies after strikes at power plants in France left Britain unable to rely on imports from its neighbour.

EDF, Drax and Uniper operate three coal-fired power plants in Britain. Only Uniper’s facility will remain open by the end of the month, though it is scheduled to close next year.

The boss of German energy giant E.ON warned that the energy crisis gripping the UK and Europe for more than a year is set to rumble on this year, with wholesale prices remaining high.

Leonhard Birnbaum, chief executive, cautioned against being “lulled into a false sense of security” as winter eases.

E.ON reported profits of €8.1bn (£7.1bn) for last year. Its UK retail division reported a 79pc climb in revenue to £31.9bn, as energy prices rose. However Ebitda, a measure of operating profits, fell 20pc to £208m.