Taxpayers may face a £10m bill after Cardiff Capital Region lost a court case related to the Aberthaw power plant demolition contract.
This group bought a power station in 2022. Aberthaw cost them £8 million. The group included ten local authorities in South East Wales. Erith won a demolition deal.
Another company, BMG, challenged the contract award legally, saying the process wasn’t fair. They actually won the legal challenge.
Cardiff Council brought the contract to the market. However, they didn’t pick the winner. Barristers said the council admitted fault and conceded liability in court.
Andrew RT Davies brought this up at the Senedd and asked the First Minister about it. He mentioned the £10 million liability, noting that the Welsh Government funds the region.
Davies asked about taxpayer confidence, wanting assurance the government was helping. He also asked about other potential claims.
The First Minister called the situation disappointing. He said the region acts independently from them, but they do monitor the region’s outcomes. He couldn’t comment more due to legal reasons.
Cardiff Capital Region admitted liability. The legal proceedings are ongoing, and damages are still being determined. They can’t comment further now.