The Welsh Government has announced an investment of around £3 million for a new electricity network and supply for businesses at the Baglan Energy Park.

It has contracted Western Power Distribution, as the local licensed distribution network operator, to design and build a replacement network following the collapse of the previous operator.

Baglan Operations Limited was responsible for the Baglan electricity generation plant, which is now closed and is also the sole electricity supply to Baglan Energy Park via a private wire network, which is license exempt.

The official receiver of Baglan Operations, which entered compulsory liquidation in March following a period of financial distress, is currently making the site safe, with a view to disclaiming or selling the power station “as soon as practicable”.

Electricity through the private wire network is being maintained by the official receiver in the interim period.

Economy Minister Vaughan Gething said: “In this interim period, while the site is made safe, the electricity through the private wire network is being maintained by the official receiver to the benefit of the customers, businesses and organisations which rely on the private wire network for their energy.

“However, 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 UK’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.”