Power users face penalty of £170m

Gas-fired generation will cost electricity consumers up to £170m a year from next April, the Confederation of UK Coal Producers claimed yesterday. The confederation said an analysis of the figures submitted to the regulator, Offer, showed that adjusted for load factor gas-fired plant produced electricity at 4.1p per unit against 3.92p a unit for coal […]

Gas-fired generation will cost electricity consumers up to £170m a year from next April, the Confederation of UK Coal Producers claimed yesterday.

The confederation said an analysis of the figures submitted to the regulator, Offer, showed that adjusted for load factor gas-fired plant produced electricity at 4.1p per unit against 3.92p a unit for coal generators.

Based on 28.9 terawatt hours of gas generation in the contracted franchise market, the confederation said the disparity would cost customers at least £50m this year – a figure that could rise to £170m when cheaper coal arrives in April.

The confederation, which represents the 20 mining companies that produce 95% of the 48m tonnes of coal mined annually in the UK, has urged the electricity regulator, Professor Stephen Littlechild, to undertake another economic purchasing review.