The plan to close the units from 1 April comes despite the company securing capacity market contract for the three units at the Fiddler’s Ferry power plant, which employs 213 people.
SSE said it would pay around $48m in penalty charge if it violates the contract by closing the units.
The plan depends on the result of its consultation process with employees and stakeholders at Fiddler’s Ferry power station. The consultation is planned to be completed by the end of March 2016.
SSE generation managing director Paul Smith said: "The reality is the station is ageing, its method of generating electricity is being rendered out of date and it has been and is expected to continue to be loss-making in the years ahead.
"Sustaining for too long loss-making power stations would undermine SSE’s ability to invest in modern generation plant in the UK."
The fourth unit, however, will continue its operations in order to provide services to the electricity system for the winter of 2016/17.
Paul Smith added: "The fact it makes more sense for SSE to contemplate making a substantial payment in lieu of the capacity agreement relating to Fiddler’s Ferry in 2018/19 demonstrates just how economically challenged Fiddler’s Ferry has become – its losses are unsustainable."
By 2025, the UK Government announced its plan to close all coal-fired power plants by 2025 as part of its effort to reduce carbon emissions from the electricity sector.
Image: The Fiddler’s Ferry coal-fired plant in Cuerdley, Cheshire. Photo: courtesy of SSE.
