Sutton Bridge Power Station will be placed into a 'safe and dormant state' after administrators called in

Sutton Bridge Power Station will be placed into a 'safe and dormant state of preservation say the new administrators.

Jim Tucker and David Pike from KPMG’s Restructuring practice were appointed joint administrators for Calon Energy Group, which includes Sutton Bridge Power Generation and Sutton Bridge Power Systems (London Ltd) and Calon Energy Sutton Bridge.

The operating companies for Sutton Bridge Power Station, which employs 68 people, and its counterpart in Newport are affected by the appointment, which was announced yesterday.

Mr Tucker, restructuring partner at KPMG and joint administrator, said: “Following the appointment of administrators over Calon Energy Limited, the group’s Topco, on 24 June, CEL’s administrators have worked closely with the senior management team and key stakeholders to consider a number of options in relation to CEL’s operating subsidiaries.

“The recent and ongoing challenges facing the UK power market mean that these power stations are currently not generating sufficient returns to continue trading effectively. It has therefore been determined that the power plants will be placed into a safe and dormant state of managed preservation to provide more time to explore all options in order to recover value for the group’s creditors.”