Ironbridge power station will not be kept on standby for blackouts

Energy companies across the UK are being paid millions of pounds to keep old power stations on standby amid mounting fears of blackouts.

The companies will be paid to mothball rather than demolish the power stations being taken out of service.

The move is being planned after Ofgem, the energy regulator, warned of energy shortages within the next three years.

However, Scott Somerville, a spokesman for E.on, the energy company which runs the power station, said: "There are no plans for it to remain open beyond the closure date."

Ironbridge's operating hours were restricted in 2008 under a European Union-wide law that imposes a pollution threshold on power plants.

Ironbridge is now due to close at the end of 2015 as it does not conform to EU emissions.

In 2012, Ironbridge was given the permission to trial the use of biofuel, bringing 100 new jobs to the station, however, E.on does not plan to re-license the station as a biomass plant, and despite these proposals there are still no plans to keep the station open.

Ofgem has said that these new measures are necessary because new wind farms and nuclear plants have not been built in time to replace the old oil and coal plants being phased out.

National Grid, the body responsible for the electricity transmisssion network, says the plants would be used as a last resort.

Consultation

Energy firms would be paid annual rates to keep the plants on standby, in addition to any fees for generating electricity in the event that they are needed.

Documents submitted to Ofgem' consultation on the plans show that energy firms could be paid as much as £120 million under the scheme.