British Steel Industry Urges "Buy British" for National Grid Overhaul

Britain's steel industry is advocating for a "Buy British" policy as concerns mount over potential exclusion from the £19 billion Great Grid Upgrade, a project aimed at modernizing the national electricity transmission system.

The overhaul, described as the largest in decades, is intended to facilitate the integration of new offshore wind and other renewable energy sources, while also supporting the burgeoning demand from industrial sites and data centers, including those for artificial intelligence.

Gareth Stace, director-general of UK Steel, has called for British companies to be given the opportunity to supply materials for the thousands of pylons and 600 miles of new power lines planned. "We are saying this is a great opportunity, let’s not miss out," Stace stated, expressing fears that the situation could mirror the recent wind farm construction boom, where UK firms were largely overlooked for contracts.

National Grid, the £56 billion FTSE 100 company that owns the electricity transmission network in England and Wales, is not subject to public project rules that mandate the use of British steel. As a publicly quoted company, its procurement decisions are not automatically bound to favor domestic suppliers.

Steel industry representatives have indicated they have not yet received details about National Grid's procurement plans, which would allow them to bid for contracts. Ministers are reportedly facing pressure to support domestic industries, particularly in critical infrastructure, but may be wary of potential negative reactions from the United States amid rising geopolitical tensions.

In a related development, Prime Minister Andy Burnham recently announced the establishment of a state-owned Great British Grid company, intended to rival National Grid. This new entity would be funded with £4 billion from Great British Energy, with the stated aims of increasing competition, reducing costs, and expediting energy connections.

Clive Betts, deputy chairman of the Public Accounts Committee, emphasized the importance of prioritizing British steel in national interest projects. "Where there is a national interest, there ought to be a requirement for both the customer to look seriously at British steel and British steel companies," he said.

The push for domestic sourcing also comes as key decisions loom for other significant contracts, including the £2 billion Skynet military satellite program and contracts for small modular reactor nuclear power stations. Concerns exist that UK firms might be overlooked in these areas as well, despite efforts by companies like Forgemasters in Sheffield to secure roles in supplying components for nuclear reactors.

A spokesperson for National Grid stated, "We will continue to work with industry to maximise opportunities for British businesses as this programme progresses." A government spokesman added, "We are focused on reindustrialisation, having already taken steps to protect UK steelmaking and strengthening our domestic supply chains, including for grid parts."