Bord Gais may build power station

Bord Gáis has signalled it may build its own power station in Co Meath despite losing the recent competition to build the State…

Bord Gáis has signalled it may build its own power station in Co Meath despite losing the recent competition to build the State's next two electricity plants.

Chief executive Mr Gerry Walsh, announcing the company's 2003 results yesterday, said he would not rule the option out.

"We are not out of the electricity game by a long shot," he said.

Bord Gáis lost out in the competition to build the plants to Co Limerick firm Aughinish Alumina and a consortium called Tynagh Energy.

READ MORE

The Bord Gáis proposal was to build a large station at Plattin, Co Meath, along with Scottish and Southern Energy.

This proposal was rejected by the Commission for Energy Regulation.

Mr Walsh declined to comment on whether its plans would involve Scottish and Southern, but he said the general idea of Bord Gáis building its own power plant should not be dismissed.

"There are two options open if you want to acquire electricity. You can build your own plant or you can buy the electricity. We will be considering both these options in the time ahead," he said.

Bord Gáis currently has 17 per cent of the electricity market. It does not generate its own electricity, but purchases it from other suppliers and sells it on.

Mr Walsh said the decision depended on what happened in the market generally.

Viridian has also signalled its interest in expanding its Huntstown power plant in north Co Dublin.

Bord Gáis continued to grow its electricity supply business during 2003 with turnover growing by 59 per cent over 2002 levels.

Mr Walsh acknowledged the company might lose some market share as the gas market opened up further, but he was determined this could be made up on the electricity side.

"The electricity market continues to deregulate and will be fully open to competition by February 2005.

"Continued development of our electricity business represents a key strategic intent for Bord Gáis and will be used to mitigate gas customer attrition resulting from the liberalisation of the Irish gas market."

Mr Walsh said Bord Gáis performed well in 2003 on an operational level with operating profits up 9 per cent from €137 million to €149.6 million. Turnover was up 7 per cent to €700 million.

He acknowledged pre-tax profits dropped by 9 per cent to €103 million, but said this was due to increases in depreciation and interest.