Power station cheer for builders

by John d'Arcy



Contractors have given a warm welcome to a Government announcement that it is to end its two-year moratorium on the building of new gas-fired power stations.

Trade and Industry Secretary Stephen Byers said restrictions on new gas-fired plants would be lifted in October. This would follow completion of new electricity trading arrangements.

Lifting the stricter consents policy would allow new power station developments to go ahead if they are viable in the reformed energy market. It would facilitate "new gas stations that are genuinely competitive, including combined heat and power stations, to contribute to greater energy efficiency and cut down in carbon emissions."

Brennig Williams, director of the Engineering Construction Industry Association, commented: "We hope the review of electricity trading arrangements will be delivered on time in the autumn and that the Government will then promptly lift the restrictions on gas-fired plants and go back to the arrangements that applied before December, 1997."

The energy statement included a £100m aid package for the coal industry.