Northern Ireland's electricity generating companies, which charge 43 per cent more than their mainland UK counterparts, are to be referred to the Monopolies and Mergers Commission by Ofreg, the North's power regulator.

The MMC is to consider arrangements agreed at privatisation in 1992 under which the generation companies enjoy inflation-proofed contracts with Northern Ireland Electricity, the listed distribution, transmission and supply company.

The move follows a long but unsuccessful consultation between Ofreg and the companies - Nigen, a Belgian-US consortium, Premier, the BG subsidiary and the management buy-out which runs the small coal-fired Coolkeeragh power station in Derry. The average price of generation in Northern Ireland is 4.15p per kWh compared with 2.9p in England and Wales. It accounts for 50 per cent of domestic electricity prices and 80 per cent of the cost for industrial users. - (Financial Times Service)