MORE than 200 jobs will go as RWE Npower closes its Tilbury power station in October.
The company hoped to “retro-fit” the existing site, which converted from coal to biomass two years ago, to comply with European rules reports the Daily Telegraph.
But in a letter to staff, RWE’s UK head of generation, Kevin Nix, said last week’s Government’s announcement regarding energy policy did not “provide sufficient clarity on market reform”.
He said: “Without the final detail it is impossible for the board to make a major investment decision.
“It is of the utmost importance to provide our people with clarity on the status of the project in order to consider their future options.
“We are therefore informing our people at Tilbury that development work is being halted.”
In the staff letter, Mr Nix adds RWE Generation is “looking to reduce our costs and increase in the cash coming into the business”.
The manager of the Tilbury power station, Nigel Staves has said he hoped that “bio-mass” fuel will be generated at the site in the future.
RWE Npower confirmed the closure plans last night, and a spokeswoman insisted market conditions and cut backs by German-owner RWE were also critical factors.
She said: “We haven’t got the money.”
In February, Npower chief executive Paul Massara warned Government the company would have to significantly scale back its investment in Britain unless the Government provided “desperately needed” certainty over energy policy.
He told the Sunday Telegraph: “I doubt that we will be investing the kind of money we have been investing unless there are propositions which attract not only us but also enable other capital lenders to come into the market place.”