Gas-fired plants to reap huge subsidies despite uncertain future

Fossil fuel faces stiff competition from nuclear, renewables and European imports

Gas power plant operators will scoop millions of pounds in state subsidies in coming days to go on standby next winter, but the owner of the UK's largest gas fleet has warned the fossil fuel faces an uncertain future as a cornerstone of UK energy.

Auctions starting on Tuesday for contracts in the capacity market, the government's insurance policy for ensuring reliable electricity supplies, are crucial to the survival of gas plants.