Delay won't halt power switch

UNITED KINGDOM - Despite a four-month delay in establishing the Single Electricity Market, the British and Irish governments remain fully committed to the creation of an all-island energy market, Peter Hain said recently.

Initially due to go live on July 1 next year, the Secretary of State confirmed that the revised date would carry the all-Ireland switch in November 2007.

The move follows a review by the Northern Ireland Authority for Energy Regulation and its counterpart in the Republic, the Commission for Energy Regulation.

Once completed, the SEM will enable suppliers to sell power into an all-Ireland electrical grid.

Speaking after a meeting with her Irish counterpart Noel Dempsey, Enterprise Minister Maria Eagle admitted in April that there was a lot of work yet to do, but pledged the Government's commitment.

Mr Hain and Mr Dempsey, the Minister for Communications, Marine and Natural Resources, reiterated that commitment, but said they were backing the recommendation from the regulatory authorities.

After consultation with the transmission system operators it was agreed the delay would enable "extensive market testing and implementation to run from June to November, 2007'.

"This is a ground-breaking arrangement between Northern Ireland and the Republic that will create a single wholesale electricity market across two jurisdictions,' said Mr Hain.

"The new Single Electricity Market is the first of its kind in the European Union and will be a flagship development in the European drive towards a common energy market.'

It was essential, Mr Hain added, that the system be absolutely right and that regulators, the transmission system operators and industry have time to finalise the design and implement the market for the benefit of customers and both economies.

"The SEM will enlarge the electricity market across the island of Ireland and improve our security of supply in a difficult international energy climate,' he said.

"Ultimately, it will deliver the best solution for the electricity customers of the island of Ireland.'

Responding to earlier warnings, Northern Ireland Electricity owners Viridian said any delay would add to costs and could undermine confidence in the industry.

However, Viridian spokesman Robin Greer acknowledged that a "short delay' may be unavoidable "to ensure that the details of the market design are correct'.