Coal offers cheap power

Britain’s largest coal producer RJB Mining has put a plan to the electricity regulator to cut 7.5% from the bills of users unable to shop around for power supplies after 1 April. RJB has put its proposals to Professor Stephen Littlechild, head of the electricity regulator, Offer, as part of his consultation on the price […]

Britain’s largest coal producer RJB Mining has put a plan to the electricity regulator to cut 7.5% from the bills of users unable to shop around for power supplies after 1 April.

RJB has put its proposals to Professor Stephen Littlechild, head of the electricity regulator, Offer, as part of his consultation on the price constraints to be imposed when the electricity market is opened to competition.

The 11% cut RJB is offering generators after contracts expire on 30 March should translate into a 7.5% reduction for customers not benefiting from competition, the coal firm argues.

RJB, which produces 35 million tonnes a year and employs 12,000 people, says the prices many gas-fired generators receive under long-term power purchase contracts are more expensive than those of coal-fired generation, depriving users of cheaper electricity.