A construction group which includes a company fined for conspiring to rig bids for contracts was appointed to demolish Wales’ last coal-fired power station.
Last February, Cardiff Capital Region (CCR) contracted The Erith Group to demolish Aberthaw Power Station near Rhoose in the Vale of Glamorgan.
Plans for the future of the land formerly occupied by the 500-acre coal-powered station will involve developing it into a green energy park which produces and stores renewable energy.
The Competition and Markets Authority (CMA) announced in March 2023 that it fined Erith, along with nine other firms, for “colluding to rig bids for demolition and asbestos removal contracts involving both public and private sector projects”.
Nation.Cymru reported recently that an unsuccessful bidder for the Aberthaw Power Station contract raised concerns about Erith’s contract in the process in light of the fine imposed by CMA in 2023.
A CCR spokesperson said: “A procurement matter has been raised in relation to the demolition of Aberthaw Power Station and, for legal reasons, we cannot make any further comment at this stage.”
The CMA’s decision to fine Erith in 2023 was addressed to Erith Contractors Ltd and Erith Holdings Ltd.
Three directors of the companies involved, including former director of Kent-based Erith, David Darsey, were disqualified by the CMA and Erith itself was fined £17,568,800.
Mr Darsey was disqualified for a period of five years and 10 months.
He was listed as a director of Erith Contractors Ltd and Erith Holdings Ltd on Companies House and is recorded as having resigned from both on June 1, 2022.
A report by Construction News in 2023 said Erith chairman, Steve Darsey, said in a director’s report that the CMA’s findings of breaches concerned only one company within The Erith Group and calculating the fine based on the whole group’s turnover was unfair.
On the incidents which resulted in fines, CMA said each of the 10 firms was involved in at least one instance of bid rigging between January 2013 and June 2018.
The competition regulator added bids were rigged by one or more of the construction firms agreeing to submit bids which were deliberately priced to lose the tender.
This practice, known as ‘cover bidding’, can result in customers paying higher prices or receiving lower quality services.
In addition to this, the CMA found five of the firms were involved in arrangements by which the designated ‘losers’ of the contracts were set to be compensated by the winner.
Erith was one of the firms involved in the compensation arrangements. The instances of illegal collusion affected 19 contracts for demolition work in London, the South East of England and the Midlands.
The Erith Group has been approached for a comment.
Planning permission isn’t required for the demolition of Aberthaw Power Station, according to Vale Council.
However, the site’s owner is required to give prior notice of proposed demolition – something Cardiff Capital Region Energy Ltd submitted to the council in January 2023.
As part of this, the local authority has requested a comprehensive demolition plan, which has now been received and consulted on.
Vale Council’s planning page shows it approved an application providing details of the method of demolition of Aberthaw Power Station in October.
CCR Energy said in Linkedin post last February that the task of dismantling the power station is expected to take more than three years.
The post adds there is “considerable interest” from enterprises across the world “who would like to join us in creating a game changing future on this landmark site”.
After Aberthaw Power Station closed down, an ash mound was left over as a by-product of the plant’s former industrial life. Clearing this is expected to take years.
An annual report published by CCR Energy for 2023-24 states commencement of the removal and processing of the ash mound is expected to take place within the first five years of work starting on the site.
Under a section on years 11 to 15 of the project, the report states the masterplan is expected to finished during this period following the complete removal of the ash mound.
Council tax set for 6.9% hike
Eastbrook: calls to make station more accessible
RNLI volunteer welcomes new arrival
Campaigners call for better access at Eastbrook Train Station
Gething backs ‘long overdue’ leasehold reforms
Barry Trader calls on Council to work with them, not against them
Petition against proposed Barry Island parking charges reaches 1,200 signatures
Cash-strapped councils ‘facing £559m shortfall’
Sully: unattended car stolen while defrosting
Demands on council care services increasing
Morgan vows to deliver 'real change'
Vale MS condems Elon Musk's 'appalling smears'
GVS Big Volunteering Fayre returns for 2025
Barry Town Council sets out budget plans
Cardiff: budget proposals set for consultation
Windborne Singers appearing at Barry Arts Festival
Amber Warning for snow and Ice Issued
