Moyle auctions for capacity from October 2012 - conclusionsPress Release: Thursday 25th January 2007
NIEH CONTRIBUTES TO LOWER PRICES AGAIN
For the second year running, in order to minimize electricity prices to consumers, Mutual Energy has decided to make another substantial contribution from its Moyle Interconnector business. This year the company is leaving money in the pockets of Northern Ireland’s energy consumers with a contribution of £9.4m following up on a contribution of £12.4m last year. This means that the company has continued with its track record of keeping total electricity prices to consumers significantly less than they otherwise would have been.
Mutual Energy Director, Alan Rainey said “I am delighted that we have been able to make another substantial contribution to keeping electricity prices down. Our Moyle Interconnector business has had a better than anticipated trading year and we have delivered lower operating costs including the synergies from the merger of our gas and electricity transmission companies into the NIEH Group. Combined with drawing on our reserves, that has allowed us to make this difference for consumers”
However, Mr Rainey cautioned that the company has some concerns as to its ability to make similar sizeable contributions in the years ahead. The new Single Electricity Market structure due to come in later this year, may not provide revenue for the Moyle Interconnector which matches its contribution to the electricity system in Ireland.
Mr Rainey commented, “We are concerned that the future Single Electricity Market as currently envisaged may not properly remunerate the interconnector for the capacity benefits it brings to the system, although we are still in discussion with the relevant authorities.
Our business performance has been good this year in a difficult trading environment and, in addition to making this further major contribution to lower electricity prices, the Moyle Interconnector has demonstrated its essential role in ensuring that there is adequate electricity generation available to meet Northern Ireland’s needs. The new market structure will present new business challenges. However we have a strong track record on facing and overcoming such challenges in the interests of energy consumers.”.
Mutual Energy Media Contact:
Michael McKernan, Lagan Consulting Tel: +44 (0)28 9261 9550
email: michael.mckernan@laganconsulting.com
Last Updated: 22nd August 2006