Bord Gáis bids for Irish Water job

Bord Gáis says it can save €120m in start-up costs if it is given the task of establishing the proposed national Irish Water utility — expected to serve more than 1.5m customers by 2014.

Bord Gáis Éireann has made a submission to the Department of the Environment to pitch for the job of setting up Irish Water. The proposed company will take over the multi-billion euro water investment and maintenance programmes of the 34 local authorities, employing close to 4,000 people, with the key aim of “supervising and accelerating the pace of delivery of planned investments needed to upgrade the State’s water and sewerage networks”, as outlined in the Programme for Government.

The Bord Gáis proposal stands, despite the Government’s decision this week to sell off Bord Gáis Energy.

Bord Gáis plans for Irish Water link it strategically to Bord Gáis Networks but envisage IW being a stand alone, non-integrated, company, leveraging the utility capabilities and financial strength of the parent company.

Bord Gáis outlined in its submission that it could save €120m in the start-up phase alone by leveraging its existing utilities IT infrastructure.

The company argues that Bord Gáis Networks’ portion of the business has an annual debt pay down capability of €150m, making it easier for Irish Water to raise the estimated €3bn in investment the new company will require to upgrade the water network and fit more than one million water metres by 2015.

Bord Gáis believes its ability significantly reduce start-up costs and fund future developments will greatly cut the final water charge levied on individual households — making it the most cost-effective entity to run the new business.

Bord Gáis argues that with an annual turnover of €1.5bn it has the ability to manage large-scale operations such as Irish Water, which would increase its turnover by close to 50%.

In its submissions, Bord Gáis points out that it is one of just three State companies rated by credit rating agencies, such as Standard & Poor’s and Moody’s, with the ability to raise the massive funds required for the roll-out of a national utility like Irish Water.

Bord Gáis argues in its submission, that it is best positioned to deliver the best solution for all stakeholders. Bord na Móna has separately lobbied to run Irish Water.

Bord Gáis also points out that similar gas/water utilities already work on a national and multi-jurisdictional scale, with companies like the National Grid, EDF, E.On and Dee Valley Group proving their planned approach can work.