PART of a mothballed oil-fired power station is to be brought back into service to meet increased demand this winter.

Powergen said one unit of its power station at Grain, near Rochester, Kent, would be returned to action next month.

The move comes amid concern that the recent mothballing of plants following a 40 per cent fall in wholesale prices could test the UK power network this winter.

The unit at Grain can generate 650 megawatts - enough to provide power for about 500,000 people. Powergen chief executive Dr Paul Golby said: "The reason we have taken this step is to provide more power this winter, when demand is at its highest and wholesale prices are at a level that potentially make it economic to generate from this unit."

Two of Grain's four units have been mothballed for some time, with the remaining units following suit in October and March.

Dr Golby said: "This is a short-term move affecting one unit at Grain only."