The Welsh Government has lost a high court bid to stop the Baglan energy plant power supply from being switched off following the collapse of the Baglan Operations power station last year.
Businesses at Baglan Energy Park face losing electricity supply after failed legal proceedings to prevent the private wire network from being discontinued until a longer-term solution could be implemented.
The judge dismissed the application by the Welsh Government, Dŵr Cymru, Neath Port Talbot Council, and the largest company on the Energy Park, Sofidel.
However, he did direct that the power supply to the private wire network be maintained until 18 April 2022 for Dwr Cymru and Neath and Port Talbot Council.
In a statement, Economy Minister Vaughan Gething said: “The Court Order, received today, directs that the power supply to Sofidel and other customers at the park should be maintained until at least the 4th April 2022.
“This would clearly be some weeks ahead of the provision of the new power network arrangements for all customers.”
The energy plant stopped generating power in 2020, but had continued to supply power to firms on the industrial estate through connection to the National Grid.
Power at the site was originally due to be switched off in January but were kept on pending the result of the court case.
Mr Gething said he and his officials are now considering the judgement, and the Welsh Government’s position with regards to a possible appeal.
He said: “In parallel, I have served proceedings for Judicial Review on the Secretary of State for BEIS as I continue to believe BEIS do have the powers to intervene to ensure continuity of supply for the benefit of the citizens and businesses in the Baglan Bay area.”
Baglan Operations, which collapsed in March last year following a period of financial distress, was responsible for the park’s electricity generation plant and its sole electricity supplier via a private wire network.
The Official Receiver from the UK Government’s Insolvency Service was appointed as the liquidator and has been making the site safe, with a view to disclaiming or selling the power station as soon as practicable.
In September last year, the Welsh Government 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.
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This has included an ongoing provision of the sole electricity supply to Baglan Energy Park via a private wire network linked to the now-closed Baglan Energy Plant.
Electricity infrastructure business Western Power Distribution was also contracted by the Welsh Government to build a new electricity distribution network for the 180-acre park based in Port Talbot.
Mr Gething said that WPD were working quickly and due to complete ahead of schedule, with the majority of customers expected to have their new connection in place by the end of May 2022.
He said: “The Welsh Government is mindful of the stress and uncertainty that customers of the Energy Park have experienced as a result of this ongoing issue.
“We will continue to work with Neath Port Talbot County Council, Dwr Cymru and all relevant parties to secure a solution to the very significant risks of public health and environmental harm including increased flood risk, as well as the risks to the local economy, the termination of the private wire energy supply would create for businesses and citizens in Baglan ahead of the new distribution network being in place.”