Unions demand government intervention as Tata Steel faces 12-month grid delay

Trade unions representing steelworkers in south Wales have urged the UK government to intervene to accelerate Tata Steel’s connection to the electricity grid, following announcements of delays of up to 12 months. The Indian conglomerate reported that National Grid cited unexpected engineering difficulties, unsuitable ground conditions, and planning issues as causes for the setback, which threatens the timeline for a new electric arc furnace in Port Talbot. Union leaders, including those from the Community, Unite, and GMB, criticised National Grid’s performance and called for urgent resolution to protect jobs and the decarbonisation agenda. National Grid, a privatised FTSE 100 company, stated it is working constructively with Tata Steel and the government to explore options to accelerate the programme.

The delay represents a significant escalation from earlier estimates. Tata Steel’s chief financial officer, Koushik Chatterjee, indicated during an investor call that National Grid had initially warned of a potential delay of up to 18 months, according to a transcript collected by Alphasense. While the company had previously communicated a six- to eight-month delay, the revised timeline adds further complexity to one of the UK’s most critical industrial projects. The electric arc furnace, for which the government has pledged £500m in subsidies, was hoped to be operational by late 2027, but the setback now jeopardises that schedule.

National Grid, a privatised FTSE 100 company with a market value of £60bn, stated it is working constructively with Tata Steel and the government to explore options to accelerate the programme. The utility provider cited unsuitable ground conditions, planning and environmental issues, and complex engineering requirements as the primary causes for the setback. A spokesperson for National Grid emphasised that construction is underway and that they are committed to delivering the connection safely and quickly, noting that the project involves careful design and delivery subject to regulatory considerations.

Union leaders have expressed deep concern over the impact on the workforce and the broader decarbonisation agenda. Roy Rickhuss, general secretary of the Community union, described the news as concerning and demanded urgent clarification, stating that jobs and livelihoods in Port Talbot are dependent on the project progressing on time. Charlotte Brumpton-Childs, national secretary at the GMB, echoed these sentiments, arguing that National Grid needs to resolve the uncertainty felt by workers, their families, and the wider community. The unions represent the steelworkers affected by the transition, which saw 2,000 job redundancies after the closure of blast furnaces in September 2024.

The situation has intensified calls for structural changes within the energy sector. Unite general secretary Sharon Graham argued that National Grid’s failure to install the Port Talbot connection on time demonstrated that the firm acts in the interests of its shareholders rather than the wider UK economy. Graham called for the nationalisation of National Grid, asserting that it is systematically failing businesses seeking to maintain and increase employment. The delay compounds existing challenges for Tata Steel, including a recent fire that destroyed part of the remaining Port Talbot operations, known as the pickle line, forcing the company to consider reopening a facility in Llanwern, near Newport.

Tata Steel is currently exploring mitigation strategies to address the grid connection issues. These options include changing the order of works and installing a smaller, interim electricity supply to allow for testing. A company spokesperson confirmed that while discussions regarding the commissioning timetable are ongoing, they have already reached several key milestones in the construction phase. The incident highlights the persistent criticism National Grid has faced over the length of the backlog of projects waiting for grid connections, a challenge that has persisted since the company was privatised in 1995.