Use of BETTA rebate to Northern Ireland interconnector

NIAER consultation (10 pages, PDF) on the use of a BETTA-related £30 million return of capital contributions for the Moyle interconnector's connection to the Scottish network. The paper does not discuss whether the return of capital contributions is associated with any increase in future annual connection charges.

This money will be received by NIEH, the debt-financed company without equity investors that now owns the Moyle interconnector. The paper discloses that NIAER has already approved the use of £10 million by NIEH as an investment in a new renewable equity fund, although this is "expected" to be "repaid in due course"; and the use of a further £6 million to cover expected shortfalls in revenues for the interconnector in 2006/2007 and "over the next few years" (as a replacement for income that would otherwise have been raised through NIE network access charges).

The main point for consultation is the allocation of the rebate over the longer term. The paper is critical of the option of using the money to repay part of the Moyle debt, and highlights options to:

Responses by Sunday 30 April 2006.

For further information or advice please contact Franck Latrémolière.

Filed under BETTA, Electricity, Ofreg.

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