A leading Northern Ireland businessman has called for a major restructuring of the electricity industry in the region. Sir George Quigley, the Northern Ireland chairman of the Canadian-owned Bombardier Aerospace Company, has proposed setting up a consumer service corporation to own and operate the transmission and distribution assets of Northern Ireland Electricity (NIE).

"Generating costs constitute a significant element of total electricity costs here," said Sir George."However, it is often overlooked that transmission and distribution, which is the responsibility of NIE, part of the Viridian Group, represent some 30 per cent of total electricity costs.

NIE has been heavily criticised because of high costs, with industrialists claiming they are having a serious impact on business. Electricity prices in Northern Ireland are more than 40 per cent higher than the average price in Britain.

A consumer service corporation would significantly reduce financing costs and better align the interests of the company and consumers, said Sir George.

Buying out the network, estimated to be worth £700 million sterling (€1.1 billion), would be fully funded by debt. "On a debt-funded model, one is able to get the costs of capital down very substantially," said Sir George.

"You're also able to get a number of efficiencies, which comes from removing the conflict between the consumer and the shareholder, and that would result in a 4.5 per cent reduction in overall electricity prices in Northern Ireland."

Royal Bank of Canada, which has extensive experience in devising financial solutions for the delivery of services such as electricity and water provision in Canada, the US and Britain, attended the talks and has been advising Sir George.

Sir George said the bank's role in the debate would not preclude other financial institutions becoming involved.