London Underground power supply deal to be terminated
The Powerlink consortium was awarded the contract in 1998 but London Underground has decided put a 15-year break clause in action next August.
Power Networks makes up 80% of the consortium while Balfour Beatty and ABB make up 10% each.
270 staff are employed by the consortium with the role of overseeing the supply and maintenance of power for the tube network.
London Underground said both sides “will work together closely over the coming months to ensure a smooth transfer of staff and activities back to LU next year.”
Sarah Atkins, London Underground Commercial Director, said: “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.
“Although the contract has been performing well, the move to restructure the PFI arrangement will give us increased operational flexibility, and mean we can invest the savings made in further transport improvements for our customers.”