All-Ireland power market ‘by 2007’

LOWER electricity prices may be on the way in the medium term after energy regulators on both sides of the border yesterday agreed a July 2007 deadline for creating a single All-Ireland power market.

The move will benefit smaller power generators and is expected to allow for greater competition between the state-owned ESB and publicly-quoted Northern Ireland power generator Viridian.

Yesterday’s deal will mean the Dublin-based Commission for Energy Regulation (CER) and the Northern Ireland Authority for Energy Regulation (NIAER) will publish a timetable next month with details of the steps they will take to harmonise the two power markets on the island. The joint programme will also aim to co-ordinate planning of the separate power transmission networks and adopt a common stance on dealing with renewable energy.

The CER will absorb two-thirds of the cost of the joint programme, with the Northern authorities picking up the remainder of the bill. Both regulators agreed to work with their respective governments to put in place the necessary legislation to give effect to the single market. This will include moves to iron out differences in taxation that would give an advantage to southern-based generators.

Communications, marine and natural resources minister Dermot Ahern said the agreement was “an important milestone” in creating a single power market.

“I believe an all-island energy market will contribute to a more efficient service for all customers, north and south of the border,” said Mr Ahern.

The creation of a single market will allow northern generators to supply power to customers in the Republic and vice versa. Viridian already supplies power to businesses in the Republic through subsidiary Energia and owns one of the small number of independent power generating stations in the Republic, at Huntstown in north Dublin.