UK power generator Drax to provide "winter contingency" service
Reuters
Published Jul 06, 2022 18:59
Updated Jul 06, 2022 19:10
(Reuters) - Drax Group (LON:DRX) Plc said on Wednesday it had entered into an agreement with National Grid (LON:NG) at the British government's request and now the power generator's two coal-fired units will be available to provide a "winter contingency" service.
The units will be used for the UK power system from October until the end of March next year and only operate if and when instructed to do so by electricity and gas utility major National Grid, Drax said.
The units will not generate commercially for the duration of the agreement.
British business minister Kwasi Kwarteng said on Twitter (NYSE:TWTR) earlier on Wednesday that Drax had agreed to keep its coal-fired power plant online this winter if needed.
Under the terms of the agreement with National Grid, Drax will be paid a fee for the service and compensated for costs incurred, including coal costs.
Drax also said it will provide high levels of renewable electricity generation in the UK throughout this winter.
The company expects 2022 adjusted core profit to be slightly above the top end of analysts' expected range of 584 million pounds to 635 million pounds ($697.1 million-$758 million).
($1 = 0.8377 pounds)
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Written By: Reuters
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