Rabbitte prepared to sell part of Bord Gáis

MINISTER FOR Energy Pat Rabbitte would favour selling part of Bord Gáis if it were to attract a big player to the Irish market.

The Government is shortly to begin debating the future of State-owned companies, such as energy businesses ESB and Bord Gáis, part of which may have to be sold under the terms of the Republic’s bailout deal with the troika.

The deal commits the Government to sell some State-owned businesses, specifically those that have no strategic importance. Some of the cash raised will be used to pay off the Republic’s sovereign debt.

Mr Rabbitte, whose department has charge of some key State companies, told The Irish Timesin an interview this week that he would favour selling the Bord Gáis energy business in some circumstances, but not its natural gas network, which the Government regards as strategically important.

The Minister said that if the sale were to attract a big player to the Irish gas and electricity markets, then that would be in line with Government objectives.

While the Minister said that strategically important assets should remain in State control, he said he did not believe that there was a need to keep the “non-network” divisions of Bord Gáis.

It supplies electricity and natural gas to consumers and businessses, owns power generating plants and operates the Republic’s natural gas network.

British utility Centrica has made overtures to the Government about the possibility of buying the State company.

However, the prospect of a sale of any State company to any private business is thought to be at least a year away.

The latest twist in the deal between the Government and the troika allows some money raised from the sale of State assets to be reinvested in the economy and specifically in job-creation measures.

The Government is set to consider two reports on State companies, one dealing with the ESB and the other a survey of all other assets, early next week.

The Minister also ruled out introducing a guaranteed price or tarriff to support the development of offshore wind farms.

Organisations representing businesses planning to invest in the development of offshore wind-powered electricity generation have been lobbying for such a support, arguing it would spark considerable investment and job creation.

Existing supports for onshore wind farms and renewable energy are paid for through the public service obligation (PSO) that is levied on all electricity bills in the Republic. This year, consumers and businesses will pay €32 million extra through the charge to cover the existing price supports.

“I do not think that we need a further imposition on the PSO in terms of offshore wind,” the Minister said. He added that there was enough onshore wind coming on stream to ensure that the Republic will meet its target of generating 20 per cent of electricity needs from renewable sources by 2020.

Mr Rabbitte yesterday launched a report published by the Irish Bioenergy Association showing that bioenergy could create up to 3,600 permanent jobs by 2020.