Generator hit by £45m blowout

The clean-up of one of Britain's biggest polluting power plants has backfired, blowing a £45 million hole in the accounts of a major electricity generator.

International Power said Rugeley, its Staffordshire coal-fired power station, which has been out of commission for several months, is set to be offline for a few months more.

Rugeley, a 1000 megawatt plant which produces enough electricity to power most West Midlands homes, was shut for planned maintenance earlier this year aimed at cleaning it to EU standards and generally lowering what Rugeley has to pay in carbon dioxide pollution permits.

But a new component has failed. New anti-pollution equipment will not now be fitted until early 2009. International Power said that will cost it a £45 million reduction in second-half profits. Today the firm, which runs power plants around the world, reported that first-half profits rose 19% to £495 million.