Moyle auctions for capacity from October 2012 - conclusionsPress Release - 26th April 2006
Moyle Contribute £12.4 Million to Offset Electricity Prices
Moyle Interconnector Limited (Moyle) a member of the Mutual Energy (NIEH) Group, has recently announced a £12.4 million contribution to offsetting the electricity price increases soon to be announced for 2006/07. Moyle expects that the full benefit will be factored into NIE's tariff calculations for 2006/07.
This substantial voluntary contribution should make the anticipated electricity price increase around 2% lower than it would otherwise be. To make this contribution, Moyle has used its previous years' surpluses arising from good trading conditions and from its reduced costs as a mutualised company. Despite facing worsening trading conditions, the company has been able to make a contribution on this scale because of the increase in its capital reserves in the last year. Moyle needs to maintain its reserves so as to continue to meet its obligations and its ability to contribute to customers in the future.
Mutual Energy - which is unique in the energy industry in having no shareholders to remunerate - is a mutualised company whose primary aim is to bring long-term savings and benefits to Northern Ireland's energy customers.
NIEH Executive Director Alan Rainey said, "While our mission is to benefit customers in the long term, we aim to strike the right balance between long- and short-term objectives. Following our recent consultations with the Northern Ireland Authority for Energy Regulation and the Consumer Council, the company is making this major contribution to be of assistance to electricity customers in the coming year. We fully appreciate the current difficulties for customers and the challenge facing NIE in keeping price increases to a minimum." Mr Rainey added, "The contribution of £12.4 million has to be seen in the context of the size of Moyle's operations. It is our hope that other energy companies will be able to make comparable contributions to cushioning the impact of fuel price increases on ordinary customers."
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For Further Information contact:
Michael McKernan, Lagan Consulting Tel: +44 (0)28 9261 9550
email: michael.mckernan@laganconsulting.com
Last Updated: 23rd June 2006