The US utility Entergy is looking for a buyer for its 800 MW Damhead Creek power plant in the UK. The company is reported to be seeking bids for the station which came on-line in February 2001. A slump in wholesale power prices is believed to be the reason for the sale.
The plant cost £300 million to build. It operates as a merchant plant, selling power to the spot market. Wholesale power prices in the UK have dropped by around 40 per cent since the introduction of the New Energy Trading Arrangements two years ago. This year the company wrote off $55 million of equity investment in Damhead Creek.