Consumer body bids for UK-North power link

A body set up to promote the interests of consumers has bid almost £125m (€187m) for the link carrying electricity from Britain to Northern Ireland, it emerged today.

The Consumer Power Corporation, which consists of members of the business, voluntary and trades union sectors, has tabled an offer of £124.88m for the Moyle Interconnector.

The offer equals the purchase price determined in negotiations between the underwater pipeline’s owner Northern Ireland Electricity and the electricity regulator, OFREG.

The Consumer Power Corporation has also vowed to complete the deal by March 31, if its bid is successful.

Sir George Quigley, the corporation’s chairman, said the body would create a board of best qualified people to run the enterprise.

He said: “This would ensure that the consumer interest is at the heart of the new arrangements and that the business is run in a thoroughly commercial way and thereby delivers maximum cost savings for consumers.

“We also said that we would want to discuss with the bank commissioned by NIE to work out the financing of the deal how the parameters within which that work has been done could reflect better the interests of consumers.

“It is these interests which the Corporation regards as paramount.”

However, Sir George said the deal worked out between NIE and OFREG was not attractive enough for today’s consumers who are burdened by exceptionally high electricity prices.

He said: “The savings are largely back-end loaded, which means that the prime beneficiaries will be those consumers who are around after the year 2033.

“Consumer Power Corporation is advised that, if the deal were restructured to re-phase the savings, these could be some two-thirds higher over the first fifteen years.

“We are also advised that, given the support of OFREG, other improvements could be made to enhance the benefits to be enjoyed by consumers.”

The corporation will pay for the pipeline by a debt market financing transaction, or bond issue, whereby it will pay back the money to its bank with the revenue generated by the interconnector.