UK Coal agrees £200 million supply deal
13 Nov 2003
UK Coal PLC has agreed terms with EDF Energy under which between seven and eight million tonnes of coal will be supplied to the company's two Midlands power stations over a three-year period.
The agreement, worth around £200 million, takes effect in January 2004 and supplements existing arrangements under which around half a million tonnes of coal will be supplied to EDF Energy's West Burton and Cottam power stations in 2004.
EDF Energy's West Burton and Cottam stations are both of 2000MW capacity, and are in the process of being equipped with flue gas desulphurisation (FGD) plant designed to remove around 90% of sulphur dioxide emissions from the coal combustion process.
'This agreement will provide both security for our collieries and employees and for the power stations and their customers,' said UK COAL Chief Executive Gordon McPhie.
'Long term contracts like these will help to reduce the impact on our customers of the volatility of wholesale prices. Stable fuel costs have obvious benefits throughout the whole energy chain and support low, stable prices for customers,' commented EDF Energy's Chief Executive Vincent de Rivaz.
