NIE Sells Power Network

Northern Ireland Electricity's owners have agreed to sell the network in a cross-border deal worth more than £1bn and it is also buying the power generated by the SeaGen tidal turbine in Strangford Lough.

Viridian has negotiated the deal with Irish energy company, the Electricity Supply Board, for the purchase of the provider and the sale should be completed by the end of the year, subject to all conditions being met as the deal still has to be cleared by the relevant energy authorities.

As part of the acquisition, ESB will also acquire certain associated companies of NIE, including NIE Powerteam Limited and Powerteam Electrical Services (UK) Limited, which provide electrical construction and maintenance services.

NIE is the transmission and distribution business of Viridian, Northern Ireland's main power company.

Speaking last night, the Stormont Energy Minister Arlene Foster said she had already discussed the transaction with the regulator and the Irish Minister Eamon Ryan.

"I have received assurances from ESB on a range of issues relating to the transaction. These include ESB investment plans, the importance of securing existing jobs, and maintaining the identity of the electricity network business in Northern Ireland.

"I will continue to keep a close watch as the transaction proceeds towards completion, to ensure the interests of electricity consumers in Northern Ireland are being properly considered.''

The NIE Group employs 1,300 staff and is owned by the Viridian Group which runs the generation and supply business Energia, and operates windfarms and the Huntstown power station in north Dublin.

ESB already has a presence in Northern Ireland through the Coolkeeragh power plant near Londonderry.

NIE's ultimate owner is Arcapita, a Bahrain-based bank, which bought Viridian in 2006 for more than £1.6bn.

The deal will see NIE continue to operate under its own brand, but ESB said the link will help both the Irish and Northern Irish governments to hit their policy and environmental objectives in developing renewable generation and smart metering, and ensuring security of supply.

(BMcC/KMcA)