KILROOT Power Station in Co Antrim has been given a one-year contract to provide power to the Northern Ireland grid, but 85 jobs are set to go at neighbouring Ballylumford.
It was confirmed yesterday that Kilroot owner AES has entered into an agreement with the System Operator for Northern Ireland (SONI) to provide 12 months of power following talks between the two parties and the Utility Regulator.
As part of the announcement, however, AES is to close two of its generating sites at Ballylumford in Islandmagee, in a move that involves the transfer of capacity to Kilroot.
Although it is reprieve for the Carrickfergus station, with a reported 178 jobs saved, it is thought that 85 jobs will now be lost at Ballylumford.
President of AES UK and Ireland, Serhiy Zuyev confirmed they will now enter into discussions with trade unions to discuss the job losses.
“The portfolio restructuring at AES in Northern Ireland will have an impact on the organisation structure across both Ballylumford and Kilroot plants, " Mr Zuyev said.
"Management will immediately enter into consultation with union representatives on how that process will be managed to mitigate compulsory redundancies where possible."
The agreement comes less than a year after AES failed to win a contract in an auction process aimed at increasing competition in the new all-Ireland Integrated Single Electricity Market (I-SEM).
The Federation of Small Business (FSB) in Northern Ireland said the reduction in output from Ballylumford will likely increase electricity costs for businesses by 1.5 per cent. It is also believed that it may add around £6 to the annual household electricity bill.
“Expectations were raised at the beginning of the auctioning process that it would lead to cheaper energy for Northern Ireland businesses, which continue to endure some of the highest non-domestic costs in Europe; these hopes have now been dashed," FSB NI head of external affairs, Roger Pollen said.
“The real concern is that the lack of transparency in the process, with implications for security of supply and fluctuating costs that are being passed on to business, as well as great uncertainty for workers at the sites and in the supply chain."
Trade union Unite welcomed the news that the jobs of more than 170 AES workers and more than 100 direct, full-time contractors are to be safeguarded at Kilroot.
"Our objective is now to ensure that this contract rolls-over for another year after the lapse period of this contract," regional coordinating officer, Davy Thompson said.
"At the same time, this is bittersweet news, as it confirms that up to eighty AES positions will be lost as Ballylumford B power station is closed. We are hopeful that the bulk of these losses will be achieved through voluntary redundancies across the sites but the fact remains that this is a potential eighty more jobs going from the Northern Ireland economy that won’t be there for the next generation of workers," he added.
