E.ON UK has today announced that the 33 years old, oil-fired power station on the Isle of Grain in Kent, Grain-A, will be mothballed with closure of the plant by 31 December 2012.

The Grain-A power station, which has not generated power during the last two years, was originally due to be closed by the end of 2015 as it does not meet the stringent environmental requirements set by the European Union's Large Combustion Plant Directive (LCPD).

However, in recent years the back-up role it had previously provided to ensure supply and demand on the system stayed balanced in times of system stress has largely been taken over by gas-fired power stations.

Commenting on the announcement, Dr. Tony Cocker, Chief Executive of E.ON UK said: "Today's announcement concerning Grain-A is not just about closing a power station, it's also about saying thank you to the hundreds of people who worked there over the past 33 years to make sure that it could play its part in keeping the lights on. We will now do everything we can to support and assist the 16 colleagues directly affected by this decision.

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"As this corner of Kent demonstrates, how we generate the electricity we all need is changing. Oil-fired Grain-A and our coal-fired power station at Kingsnorth are both set to close under LCPD rules but just next-door we have our brand-new super-efficient gas-fired combined heat and power station and, not far from the Kent coast, we're a key partner in the ongoing development of the world's largest offshore wind-farm, London Array.

"The whole system is changing and needs to transform to one of greater efficiency, lower carbon intensity and cost-effective back-up capacity. We're continuing to invest in almost every corner of the country, both in generation and in helping our customers to reduce energy waste. The Government's draft Energy Bill is a step in the right direction, but must be kept simple, must provide a system-wide solution and deliver quickly. As an investor, we need a market framework which is efficient and straightforward and gives us the confidence to make investments that are right for our company, right for our customers and right for the UK."

(CD/GK)