Due to “increasingly difficult” market conditions SSE have closed down one of their gas-fired power stations and cut back on a new build facility.

Alistair Phillips-Davies SSE’s generation and supply director said: “We have made it clear that all of our power stations have to be able to operate economically over the medium term. The market for smaller gas-fire generation has become increasingly difficult. Fife Power Station will be loss-making this year and is forecast to remain so, particularly when the impact of the very high transmission access charges that apply in Scotland are taken into account.”

He added: “The medium term outlook is also challenging, which is why we have decided to scale back the Abernedd developement to one unit and to defer the project by at least two years compared with the original timetable. Amungst other things, this will allow us to assess the likely impact of electricity market reform as it emerges over the next year and to further analyse the economics of any investment before taking a decision to go ahead with a combined cycle gas turbine unit."

SSE have faith in CCGT however Mr Phillips-Davies explained “the right market signals need to be there if the necessary investment decisions are to be taken”.