Two of Calon Energy’s gas plants in the UK have been put into a “safe and dormant state” by administrators.

That includes the 850MW Severn Power and 850MW Sutton Bridge gas plants after Calon Energy went into administration in June.

KPMG said the plants have been put in a dormant state to allow more time to recover costs for creditors.

Calon Energy Group is an independent power Ppoducer in the UK, with a 2.3GW Combined Cycle Gas Turbine (CCGT) portfolio operating across three sites.

The company’s third site, Baglan Bay Power Station at Port Talbot, remains unaffected.

Jim Tucker, Restructuring Partner at KPMG and joint administrator added: “The recent and ongoing challenges facing the UK power market mean that these power stations are currently not generating sufficient returns to continue trading effectively.

“It has therefore been determined that the power plants will be placed into a safe and dormant state of managed preservation to provide more time to explore all options in order to recover value for the group’s creditors.”