AROUND 20 jobs will be axed when Fife Power Station in Cardenden closes next month.
The facility, owned by Scottish and Southern Energy, will shut on March 31 and workers have been assured that efforts will be made to redeploy them elsewhere.
An SSE spokeswoman said the move comes as the market becomes more difficult with the cost of gas going up. She said: “The market for small gas-fired generation is becoming increasingly challenging as gas prices rise and free carbon credits are removed.
“In its interim results statement in November, SSE explained that its generation objectives included ensuring that all its power stations are able to operate economically over the medium term.
“SSE’s Fife Power station will be loss making this year and is forecast to remain so, particularly when the impact of the very high transmission access charges that apply in Scotland are taken into account.
“Against this background, SSE has today notified employees that it has been reviewing options for the future of Fife Power Station power station and has concluded that the site should suspend commercial operations at the end of March 2011.
“Around 20 staff are affected by this announcement and SSE will now discuss with each of them the options available. This will include, identifying opportunities for retraining and redeployment elsewhere in SSE’s Generation business or the wider SSE Group, early retirement and departure through voluntary means.”
Local councillor Mark Hood said: “Every job is important to our community so to potentially lose 21 jobs in our area is a major issue.
“I have to question the energy company’s commitment to the Cardenden facility. What investment have they made in the site over recent years?”
He added: “I will be asking them to make sure they do all they can to retain the staff employed in Cardenden making use of their skills in other parts of their business.”