.gif)
Tube power PFI cancelled
16 August 2012
London Underground has announced its intention to end its electrical power PFI deal next year.
The organisation has decided to exercise its break clause within the contract, which allows it to terminate the deal in August 2013 – halfway through the 30-year deal.“Although the contract has been performing well, the move to restructure the PFI arrangement will give us increased operational flexibility,” said London Underground commercial director Sarah Atkins.
“We’ve taken a good hard look at every aspect of how we operate the railway and found that we can make significant savings by terminating this arrangement early, avoiding expensive financing costs that would have come with continuing the contract to its end.”
The £108m contract was signed in 1998 with private organisation Powerlink, a consortium comprising UK Power Networks (80%), Balfour Beatty (10%) and ABB (10%).
