BRITISH UTILITY Centrica is understood to be interested in moving into the Irish market, and may be prepared to bid for a stake in State-owned Bord Gáis, should it become available. Centrica owns British Gas and a range of power generation, exploration and other energy-related businesses in Britain, Europe and the Americas.
The group is looking at the possibility of entering the Irish market, and has met Government officials in to discuss energy policy here.
Industry sources regard Centrica as a possible bidder for Bord Gáis, or a stake in the State company, should it become available.
The British group is aware that the State’s ownership of energy businesses such as Bord Gáis and the ESB is under review. A sale of part or all of Bord Gáis is one of the issues being considered by New Era, the National Treasury Management Agency division established to develop policy for State companies.
The Government has not made any announcement in relation to the future ownership of Bord Gáis.
Sources say Centrica regards Ireland as a natural location for expansion as it is “next door” to its home market. The company itself did not comment.
British Gas sells electricity and gas to consumers and business. Centrica also operates eight gas-fired power plants, owns a stake in a number of nuclear generators and owns and operates a series of offshore and on-shore wind farms in Britain. It has a large home services business and a electricity and gas trading operation. It also has interests in the US, Trinidad and Europe.
In a separate development yesterday, Minister for Energy and Natural Resources Pat Rabbitte said the Government was preparing to begin a review of existing energy policy early next year. Speaking after the National Offshore Wind Association of Ireland conference in Dublin, the Minister said there have been a number of changes since the last White Paper, which the then government published early in 2007. “Things have changed in a number of respects, probably the most major one is a dramatic step down in economic activity.”
Mr Rabbitte said there have also been a number of developments, including the opening up of a potential export market for Irish electricity in Britain.
Charles Hendry, the UK’s minister of state for energy and climate change, also addressed the conference. He and Mr Rabbitte were due to discuss greater integration of the two countries’ electricity markets yesterday.
Mr Hendry said Britain would welcome Irish-generated electricity. The British market is likely to face increased pressure on supplies as a quarter of its generating capacity has to be renewed at a time when demand is set to grow.
