Planned gas storage facility receives a major boostPress Release - 29th September 2009
Northern Ireland Energy Holdings Annual General Meeting
Northern Ireland Energy Holdings (NIEH), operator of the Moyle Electricity interconnector, the Scotland-Northern Ireland and Belfast gas transmission pipelines (SNIP & BGTP), will hold its Annual General Meeting today, Tuesday 29 September 2009, at 5.00pm in the Europa Hotel, Belfast. The company, which is a mutualised business (where lower operating costs benefit energy consumers rather than private shareholders) is reporting on its fourth full year of operation. The 2009 Annual Report and Accounts will be presented today to Members at the Company Annual General Meeting in Belfast.
Over the past year, NIEH’s not-for-shareholder-dividend management of the Moyle Interconnector asset has made a very substantial contribution to keeping electricity tariffs in Northern Ireland as low as possible. This year the company is leaving money in the pockets of Northern Ireland’s energy consumers with a contribution of £11.9 million, following up on a contribution of £3.5 million last year.
The saving is in addition to the savings on the cost of capital associated with the mutualisation of the Moyle Interconnector, which are estimated to be approximately £16.7 million to the end of March 2009, a saving of nearly 27 per cent on the non-mutual case.
This contribution follows on from a payment of over £1 million made to the Northern Ireland gas industry at the start of the year as a result of operational savings at Premier Transmission. This is in addition to some £11 million annual savings from the much lower ‘cost of capital’ of operating the Scotland to Northern Ireland gas pipeline and Belfast gas transmission pipeline under the mutual model.
The company is also providing local support for, and is involved in the development of, a major salt cavity gas storage project which will help secure Northern Ireland’s future energy supplies. There are plans to launch a public consultation on the project in October 2009 and submit a planning application later in the year.
Chairman of Northern Ireland Energy Holdings, Peter Warry, who took up the role during the year, said: “Northern Ireland Energy Holdings continues to operate our major energy assets at a significantly lower cost to consumers than if they had remained under their previous private shareholder ownership.
“During a year of unprecedented high energy prices, we are able to report that the mutualised model is clearly working, helping to alleviate energy price increases and bringing ownership of key energy infrastructure back to Northern Ireland. With the cost of capital now contributing a higher percentage towards the final energy bill, it may well be that mutualisation is the best model to extend to other infrastructure assets and I look forward to leading the company forward at this exciting time in its development.”
Notes for Editors:
- The AGM takes place today at 5.00pm in the Dublin suite at the Europa Hotel in Belfast. Copies of the 2009 Annual Report and Accounts will be distributed to the media and senior management of the company will be available immediately afterwards. Refreshments will be available.
- For further information contact Owen McQuade, Lagan Consulting
028 9261 9550 or (mob) 07967 094494.