Matt Oliver
Wed, 8 February 2023
Drax - Ian Forsyth/Bloomberg
Workers at Britain's biggest power station have threatened to hold a series of strikes they claim will raise the risk of power cuts.
Trade union Unite claims the walkouts will effectively shut down the Drax Power Station, in North Yorkshire, straining electricity supplies and making it harder to keep the lights on.
The station can generate up to 4 gigawatts of electricity at full capacity, or roughly 7pc of national demand.
Unite’s decision to hold industrial action on February 20 and 27, March 6, 13, 20, 27 and April 4, 10 and 17 follows a dispute between the union and managers over pay.
Around 180 of the power station’s 470 staff will be involved in the industrial action, after Unite members narrowly voted to reject the offer of a 8pc pay increase.
Strike action “will close Drax down,” the union claimed, warning that Britain “could face power cuts” as a result.
Drax denied the walkouts would render the power station inoperable. It is understood that non-striking staff could be reassigned to keep all four biomass-burning units online. A spokesman said the company had “robust plans in place."
Separately, the boss of one of Europe’s largest energy suppliers warned that factories and households will need to cut energy use even more to avoid another surge in oil and gas prices.
Anders Opedal, chief executive of Norway’s Equinor, said “a further reduction in demand” would be needed to help refill gas storage sites.
Russian supplies that helped fill storage stocks for this winter have been largely cut off, leaving Europe more reliant on shipments of liquified natural gas from around the world.
Mr Opedal said: “Most likely we'll also be able to refill the storage for next winter. But that will require a further reduction in demand.
“There are unknowns such as the weather, both in Europe and Asia. Any supply disruption will also have an impact on the market. So I would say it's a little bit of a nervous market going forward.”
Both Europe and the UK have already cut energy use to get through this winter, with EU member states agreeing to cut gas demand by 15pc. In the UK, the Government launched an energy-saving campaign.
Equinor, which is majority-owned by the Norwegian state, became Europe’s largest supplier of natural gas last year, overtaking Russia. It is also the UK’s largest supplier.
On Wednesday the company posted a record $74.9bn (£62bn) profit, becoming the latest fossil fuel producer to report soaring returns following a year of high oil and gas prices.
In recent weeks prices have been declining from the highs reached last summer and this week the average pump price of diesel dropped below 170 pence per litre, shaving more than £16 off the cost of filling up a 55-litre car compared to last July.
Simon Williams, fuel spokesman at the RAC, said: “This is good news for drivers of diesel vehicles as they have had to endure some tough times with the average price of a litre nearly hitting £2 at the end of June.”
Wholesale diesel prices leapt following Russia’s invasion of Ukraine in February 2022 amid concerns about disruption to supplies as Russia is a major exporter of the fuel.
However, they have started to cool with Russian supplies still getting into the market, and other sources opening up to Europe.
Mr Williams said if retailers “play fair” with drivers, the price at the pumps should fall further given the relatively low wholesale prices, which are currently about 52.07p in the UK.
Drax power plant workers to strike nine times in three months
Alex Lawson Energy correspondent
Wed, 8 February 2023
Photograph: Adam Vaughan/EPA
Workers at one of Britain’s biggest power plants are preparing to go on strike nine times over the next three months in a dispute over pay.
More than 180 staff at the Drax plant near Selby, in North Yorkshire, plan to strike in February, March and April after rejecting a proposed pay deal.
Unite union has accused Drax of “classic corporate greed”, citing an increase in its profits, which jumped to £200m in the first half of its financial year, up from £52m in the same period a year earlier, helped by high electricity prices.
Unite said it had rejected an 8% pay rise and noted that the retail prices index (RPI) inflation rate was 13.4% in December.
The Unite general secretary, Sharon Graham, said: “This is a classic case of greed by a company which is already generating eye-watering profits. Drax is cynically seeking to boost its bonanza profits further by forcing workers to take a real-terms pay cut.
“Unite is now totally focused on the jobs, pay and conditions of its members and the workers at Drax will be receiving the union’s complete support.”
Unite claimed strike action would shut down Drax – which supplies about 6% of Great Britain’s power at times – and cause power cuts. The company refuted this claim and said it had “robust plans in place to ensure the power station continues to safely generate renewable electricity for millions of homes and businesses” in the event of industrial action.
A Drax spokesperson said: “We are deeply disappointed that Unite is planning to go forward with this unnecessary action which will see colleagues lose money instead of securing a significant pay rise. Drax remains open to dialogue with Unite to avoid industrial action.
“There are three trade unions representing colleagues at Drax power station and this offer has been accepted by Prospect, while GMB has stated it will not be taking industrial action.”
Drax, which has faced criticism over its use of biomass, said it had offered employees £2,000 each in recognition of their work extending the life of two coal units until March 2023. The units have been kept on standby at the request of National Grid.
The strikes at Drax are due to take place on 20 and 27 February; 6, 13, 20 and 27 March; and 4, 10 and 17 April.
The dispute echoes a standoff at UK Power Networks (UKPN), which supplies power to London and the south-east of England. Unite said on Monday said that 1,300 workers at the company would be balloted for strike action as they were unhappy with a pay rise of 7% for the current financial year.
Unite has previously accused UKPN and other networks of “rampant profiteering”.
Alex Lawson Energy correspondent
Wed, 8 February 2023
Photograph: Adam Vaughan/EPA
Workers at one of Britain’s biggest power plants are preparing to go on strike nine times over the next three months in a dispute over pay.
More than 180 staff at the Drax plant near Selby, in North Yorkshire, plan to strike in February, March and April after rejecting a proposed pay deal.
Unite union has accused Drax of “classic corporate greed”, citing an increase in its profits, which jumped to £200m in the first half of its financial year, up from £52m in the same period a year earlier, helped by high electricity prices.
Unite said it had rejected an 8% pay rise and noted that the retail prices index (RPI) inflation rate was 13.4% in December.
The Unite general secretary, Sharon Graham, said: “This is a classic case of greed by a company which is already generating eye-watering profits. Drax is cynically seeking to boost its bonanza profits further by forcing workers to take a real-terms pay cut.
“Unite is now totally focused on the jobs, pay and conditions of its members and the workers at Drax will be receiving the union’s complete support.”
Unite claimed strike action would shut down Drax – which supplies about 6% of Great Britain’s power at times – and cause power cuts. The company refuted this claim and said it had “robust plans in place to ensure the power station continues to safely generate renewable electricity for millions of homes and businesses” in the event of industrial action.
A Drax spokesperson said: “We are deeply disappointed that Unite is planning to go forward with this unnecessary action which will see colleagues lose money instead of securing a significant pay rise. Drax remains open to dialogue with Unite to avoid industrial action.
“There are three trade unions representing colleagues at Drax power station and this offer has been accepted by Prospect, while GMB has stated it will not be taking industrial action.”
Drax, which has faced criticism over its use of biomass, said it had offered employees £2,000 each in recognition of their work extending the life of two coal units until March 2023. The units have been kept on standby at the request of National Grid.
The strikes at Drax are due to take place on 20 and 27 February; 6, 13, 20 and 27 March; and 4, 10 and 17 April.
The dispute echoes a standoff at UK Power Networks (UKPN), which supplies power to London and the south-east of England. Unite said on Monday said that 1,300 workers at the company would be balloted for strike action as they were unhappy with a pay rise of 7% for the current financial year.
Unite has previously accused UKPN and other networks of “rampant profiteering”.
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