Energy firm 'inhibiting' growth

Mr Tami said the cost of expansion could deter some companies

An MP has claimed charges by an energy company are preventing Flintshire businesses from expanding.

Alyn and Deeside MP Mark Tami wrote to Scottish Power after he was contacted by packaging company Promens, based at Engineer Park, Sandycroft.

Promens wants to expand but said it had been told by Scottish Power it must pay hundreds of thousand of pounds to boost its power supply to sufficient levels.

Scottish Power said a study would be necessary to establish the full cost.

In the past year, Promens has invested £4.3m in an expansion which has increased the workforce from 81 to 107.

We're concerned it could deter some firms from expanding, but also that it could deter companies from siting here in the first place Mark Tami MP

But site director Clive Saunders said opportunities for further expansion were being hampered because the company would need to increase the power supply, and had been told it would need to pay for any new sub stations that were needed.

He said: "We do have potential clients for a number of projects, but because we can't get enough electricity to the site, we're restricted in what we can do.

"It means that as far as new investment is concerned, we're at the threshold.

"It's inhibiting economic growth which is important to the area."

Mr Tami said he had been told of businesses in Wrexham facing similar problems.

The company said it would "discuss the options" for meeting the cost

He said he believed areas like Flintshire did not have the infrastructure of other industrial areas which were equipped to cope with an increased demand for electricity.

He added: "The availability of power is fairly limited when companies want to expand.

"Scottish Power have said they can increase the power but it would mean building a new power station or sub-station and the company would be expected to pay hundreds of thousands of pounds.

"When energy was run within the state sector, these things would have been put in place, but private companies don't seem prepared to put them in unless the customer puts money up front.

"I have written to Scottish Power, and the north Wales group of Labour MPs have written, inviting them to come and see us about this problem.

"We're concerned it could deter some firms from expanding, but also that it could deter companies from siting here in the first place."

Feasibility study

Scottish Power (SP Manweb) said it was contacted by Promens last year, and advised the company there would be a charge for a feasibility study into increasing the power supply.

A spokesman said the energy company would need to know exactly what the new electricity demands were before providing a quote.

He added: "We have made it clear that SP Manweb is willing to undertake a feasibility study, but in order to carry out this work we must apply the appropriate fee.

"As the level of work required to increase electricity load can vary depending on the specific request, a full understanding of the overall costs would not be known until initial feasibility studies have been completed.

"Based on this, we would also then discuss the options for meeting those costs with the customer."