Unions urge government action on Tata Steel grid connection delay
10 reported
Trade unions have called on the government to intervene after Tata Steel reported a delay of up to 12 months in connecting its new electric arc furnace to the electricity grid in south Wales. Tata Steel informed investors last month that National Grid had indicated a six- to eight-month delay, which could extend to a year due to unexpected engineering difficulties. The companies are exploring options to speed up the connection, including changing the order of works and installing a smaller interim electricity supply for testing. The delay adds to challenges for the project, which aims to replace the blast furnaces shut in Port Talbot in September 2024, resulting in 2,000 redundancies. The Indian conglomerate has received £500m in government subsidies for the 3m tonne furnace, which was expected to operate by late 2027. National Grid cited unsuitable ground conditions, planning, and environmental issues as causes for the delay. The Community, Unite, and GMB unions representing steelworkers have urged the government to step in.
What’s reported
Tata Steel told investors last month that National Grid had said it would face a six- to eight-month delay for the grid connection.
The delay could stretch to 12 months due to unexpected engineering difficulties.
Tata Steel shut its blast furnaces in Port Talbot in September 2024, making 2,000 people redundant.
The government pledged £500m in subsidies for the 3m tonne electric arc furnace.
The new furnace was hoped to be operating by late 2027.
National Grid said the connection has problems including unsuitable ground conditions, planning, and environmental issues.
A fire last week destroyed part of the remaining Port Talbot operations, known as the pickle line; nobody was hurt.
Tata Steel is looking to reopen another pickle line in Llanwern, near Newport.
Koushik Chatterjee, Tata Steel’s CFO, said National Grid had warned initially that the delay could be as long as 18 months.
National Grid is a £60bn FTSE 100 company, privatised in 1995, meaning the government cannot direct its investments.
Key figures
Roy Rickhuss, general secretary at Community union
Koushik Chatterjee, chief financial officer at Tata Steel
Sharon Graham, general secretary at Unite union
Charlotte Brumpton-Childs, national secretary at GMB union
Tata Steel spokesperson (unnamed)
National Grid spokesperson (unnamed)
Sources: The Guardian
