The Welsh Government has intervened at a cost of £3m to ensure a new electricity network and supply for businesses at the Baglan Energy Park after the collapse of the previous operator.
Baglan Operations, which was responsible for the park’s electricity generation plant and its sole electricity supplier via a private wire network, entered compulsory liquidation in March following a period of financial distress.
Electricity infrastructure business Western Power Distribution has now been contracted by the Welsh Government to build a new electricity distribution network for the 180-acre park based in Port Talbot. The official receiver of Baglan Operations is currently making the site safe, with a view to disclaiming or selling the power station as soon as practicable.
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In the interim period electricity through the private wire network is being maintained by the official receiver.
In a statement Minister of the Economy Vaughan Gething said: “All parties recognise that a long-term energy solution is needed should the official receiver move to close down the private wire network, which remains outside of the 海角视频’s supplier of last resort regulatory framework.
“While the supply of power to businesses is a commercial matter between the energy supplier and its customers, the Welsh Government recognise the significant impact that any disruption to power would have on customers and the wider local economy.
“It is for that reason, I am pleased to announce that the Welsh Government has contracted Western Power Distribution, as the local licensed distribution network operator, to design and build a replacement network for the benefit of Baglan Energy Park, at a cost of approximately £3m.
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“This measure will provide new infrastructure to the energy park, affording the opportunity to customers impacted by the liquidation of the power station the option to connect to a new Ofgem-regulated distribution network.
“This action will significantly reduce the cost implications for organisations that would need to secure a new connection to the grid, and ensure that the future network is brought into full regulatory oversight.”
Mr Gething said a local taskforce, which has been convened to focus on contingency planning, will be contacting customers of the private wire network as well as overseeing detailed discussions about the final connections alongside WPD.
He added: “The taskforce will continue to explore contingency support in the event the official receiver terminates the power through the private wire network before Western Power Distribution has completed its infrastructure work.
“We continue to monitor the situation closely and are working with partners, including the Insolvency Service and the 海角视频 Government to explore all possible options to minimise the impact of any disruption to the power supply on organisations that rely on the private wire network.”