Aviva has lost almost £500 million after three controversial incinerator power plants backed by the insurer went bust.
The sum it has claimed for is far higher than previous estimates but Aviva will recoup just a tiny fraction of its investment in the projects, which aimed to generate energy from household waste that would otherwise go to landfill.
The three sites were dogged by high running costs, technical issues, and – in one case – a planning row before collapsing into administration late in 2024.
Aviva was by far their largest investor since 2015. But it will only get back 0.41p in the pound, worth just over £600,000, according to the latest creditors’ report by liquidators at FRP Advisory.
Aviva had previously written off £368 million for the plants in Hull, Boston in Lincolnshire, and Barry in South Wales.
The losses are a rare misstep for Aviva, led by Amanda Blanc, which last week posted operating profits of £2.2 billion – up a quarter on a year ago after buying rival insurer Direct Line.
Misstep: Aviva has lost almost £500 million after three controversial incinerator power plants backed by the insurer went bust
‘It is astonishing that top management took so long to smell the coffee and react to stem the losses and avoid the reputational damage it has inflicted on itself,’ said Philip Meadowcroft, an Aviva shareholder.
FRP Advisory no longer owns any of the sites, meaning that creditors are unlikely to receive anything if they are sold.
The plant at Barry was constructed without being granted the proper planning permission, according to Vale of Glamorgan Council, and is being demolished by its new owner, Associated British Ports.
Aviva declined to comment.
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