One of the largest individual electricity contracts in the State has been put out to tender by the Department of Finance.

The Department has asked energy companies to pitch for the contract to supply electricity to eight Government departments, Garda stations, Revenue offices, the Irish Prison Service and various health boards. The value of the contract was not disclosed, but industry sources suggest it would be one of the largest in the Republic.

Several of the contracts are held by the ESB, but its rivals like Energia (the supply arm of Viridian), wind energy group Airtricity and possibly Bord Gáis are likely to take an interest in the contract. Another company headed by former telecoms executives, Direct Energy, also recently entered the market.

Tender documentation circulated in recent days says green suppliers, conventional suppliers, combined heat and power (CHP) operators and those using the north-south interconnector can apply. The contract involves supplying various sites between March 1st, 2005 and December 31st, 2005.

The tender documentation makes it clear that those applying should monitor developments in the health sector.

"Tenderers should be aware that the Government is currently putting into effect proposals relating to the restructuring and reformation of the health sector. Accordingly, each tenderer should ensure that they keep informed about the status and progress of the reforms. The restructuring will involve the amalgamation of a number of existing health board and agencies and will be known as the health service executive with effect from January 1st".

While the ESB will be anxious to retain some of the contracts involved, the decision on a winner will be governed mainly on price. According to the documentation, 80 per cent of the marks allocated during an evaluation will be governed by price.