The UK’s future electricity supply takes a hit

The UK’s only planned gas power station is now in doubt after it emerged that Carlton Power, the company who was awarded a government subsidy to build the plant, had failed to secure financial backing. The plant was due to be built in Trafford, Manchester and was due to start producing electricity for the UK in 2018, however that now looks in doubt.

Business electricity​​

Carlton power had signed up to build the power plant to be entitled to government subsidies worth £30 million a year for 15 years. However, the low wholesale price of electricity has meant that investing in gas power plants is not currently very appealing.

If Carlton Power pull out of the deal they could face a fine of £8 million and the government would need to find another party to build the plant. This could take time to source, and many experts point to the fact that the plant is needed by 2018.

The gas power plant requires £800 million worth of investment to build, which is a lot cheaper than the proposed nuclear power plant an Hinkley point, which was going to cost £24.5 billion and produce only double that of the gas power plant.