SHARES in the American parent company of Ipswich-based TXU have slumped further as prices in the electricity industry continue to fall worldwide.The value of shares in the Texan-based parent company today stands at $14.
SHARES in the American parent company of Ipswich-based TXU have slumped further as prices in the electricity industry continue to fall worldwide.
The value of shares in the Texan-based parent company today stands at $14.65 each. This was the figure at the end of trading in New York on Wednesday – a fall of $2.53 on the previous day.
Problems in the European division of TXU, based in Ipswich, were blamed for the recent crash in value in the company, which has seen shares fall by 35 per cent in the last seven days.
Just a week ago, TXU shares stood at almost $40 per share and a month ago they were $46 each.
The chairman and chief executive of TXU in America, Erle Nye, today repeated that there was nothing fundamentally wrong with the company.
It had plenty of cash reserves, and its businesses in America and Australia remained very profitable.
Wholesale electricity prices in the United Kingdom have fallen dramatically over the last six months, causing problems for many power companies.
Yesterday it was announced that UK energy group Powergen has taken two power stations out of service to cut costs, in a move that will result in job losses.
The two plants, at Grain in Kent and Killingholme in Lincolnshire, are to be mothballed over the next few days, cutting Powergen's electricity production by 25 per cent.
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