Media Section
Northern Ireland Energy Holdings Annual General Meeting
NI Energy Holdings Annual Report - PDF now available online Press Release - 23rd December 2008
£1.1 million payback in the pipeline for energy consumers
Electricity and gas consumers across Northern Ireland are to benefit from a £1.1 million 'Christmas present' from Premier Transmission. The seasonal announcement means that Premier Transmission, whose core business is the transmission of natural gas from Scotland to Northern Ireland via the undersea pipeline, will return over £1m to the gas industry. The payment will be made in January 2009.
The payback has been made possible due to operational savings at Premier Transmission. This is in addition to some £6m annual saving which results from the much lower 'cost of capital' of operating this core energy asset under the mutual model and the fact that Premier Transmission does not have to pay dividends to its owner, Northern Ireland Energy Holdings.
Most of this payback being announced today will be used to avoid having to increase gas transmission tariffs.
NI Energy Holdings (NIEH) is a mutual (ie not for dividend) organisation, established to purchase capital intensive energy infrastructure, in the long term interests of Northern Ireland energy consumers. The Group owns Premier Transmission, Belfast Gas Transmission and the Moyle Interconnector which links the electricity grids of Northern Ireland and Scotland. Firmly rooted in Northern Ireland, NIEH is answerable to thirty Members who scrutinise the company performance and ensure asset managers meet tough targets of reducing energy supply costs.
Announcing the ‘payback’ Paddy Larkin, Executive Director of NIEH, said; "We're delighted to be in a position to show in this practical manner how our acquisition of the SNIP (Scottish Northern Ireland Pipeline), together with the newly acquired Belfast Gas Transmission pipeline and the Moyle Interconnector, are continuing to bring real and significant benefits to the people of Northern Ireland."
"Our unique business model means that these vital infrastructural assets are owned by a not-for-dividend company which is governed by and operates in the interests of Northern Ireland’s energy consumers. We are fully committed to making our contribution to lowering energy costs and today’s announcement is an important part of that contribution, particularly in view of the recent upward trend of other energy price components."
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