Waste company Viridor revealed this morning it had doubled the provision against its full settlement total from £8m at the half year to £16m.

Interserve had its contract on the job terminated in late 2016 when it was replaced by Doosan Babcock. Shortly afterwards it decided to quit the energy from waste sector altogether.

Last week the contractor was bought out of administration by a consortium of its lenders.

In a trading statement, Viridor parent group Pennon said it has continued to monitor Interserve’s financial condition and will seek further clarification regarding the financial position of the new ongoing operating company.

The firm said: “Given the recent announcements regarding Interserve plc entering into administration we are seeking further clarification regarding the financial position of Interserve Construction,  the ongoing operating company with whom we contracted, which may change the level of provision to be announced with the full year 2018/19 results on 30 May 2019.

“We will continue to pursue recovery of all amounts due from the operating subsidiary Interserve Construction and will take all the necessary legal and procedural steps to achieve this.”

Pennon added that its three new energy recovery facilities at Glasgow, Beddington and Dunbar had now all progressed through commissioning to service commencement ahead of full operation.