Energy company Viridian informed the markets yesterday that it expected its annual results, to be released on May 23rd, to be at the upper end of expectations.

The results will cover the year ending March 31, 2006 and will include the returns from its northern and southern businesses.

Viridian said yesterday its regulated businesses performed well during the year and a major capital expenditure programme had been submitted to regulators in the North.

"This investment is primarily driven by the need to replace worn assets and to meet growth in custom demand for electricity," said Viridian.

It said its subsidiary, Viridian Power & Energy (VP&E), was performing well. This is the subsidiary responsible for the Huntstown power plant in north Co Dublin. The plant has maintained high availability over the winter period, said the company. Building of a second station at the site, Huntstown 2, is now under way.

Energia, its competitive market supply business, continued to grow its customer base in the Republic. The number of sites supplied in the Republic at March 31, 2006 was expected to be above 17,500, an increase from 14,100 at September 30, 2005.

VP&E had experienced pressure on operating margins following the setting of electricity tariffs by the Commission for Energy Regulation (CER) in the Republic for 2006 against "a background of high gas prices".

Work continues on a north-south electricity market, added the company.