A Derry-based electricity company has said it can provide cheaper electricity to the north-west region than currently supplied by the ESB. The company hopes to persuade the ESB to take its supply from its Derry plant and claims it has cross-Border support for the plan.

Coolkeeragh Power Ltd (CPL), which operates a 360 megawatt plant in Derry, says it can provide cheaper electricity because of its proximity to Donegal and the surrounding region.

The company is the only electricity company in the north-west and has a power plant of over 100 megawatts.

A spokesman for the ESB said yesterday that discussions had been held with CPL, but the ESB did not currently have any shortage in capacity.

The ESB plans to spend £20 million to upgrade its infrastructure in Donegal, which includes two power plants, one outside Ballyshannon and another small plant at Clady, near Gweedore. According to CPL, this is a "waste of money", as the company claims it can provide a new electricity link between Derry and Donegal for £4 million.

"Businesses throughout the north-west region have experienced power problems, a new supply would attract industry to the area and would substantially reduce future upgrading of power lines in the north west," says managing director Mr Richard Sterling.

The CPL plan has been submitted to the ESB and the Department of Public Enterprise for consideration.

The idea of a cross-Border electricity supply arrangement has received support from all the political parties in Northern Ireland, including the DUP and Sinn Fein, according to the company.

Another benefit of supplying Donegal, according to CPL, is that "a wide power supply through the north-west region will hasten the introduction of natural gas to Coolkeeragh and from there to the wider western community".