Sale of NIE a catastrophic move - Allister
07 July 2010
Statement by TUV Leader Jim Allister:-
“The proposed sale of NIE to the Republic’s state owned ESB is a wholly retrograde step, both economically and from the consumer perspective.
By selling off NIE, infrastructure and retail, to the Electricity Supply Board. NIE will join the Irish government’s portfolio of energy businesses that already includes ESB, Bord Gais, Firmus, Bord na Mona, Eirgrid and System Operator Northern Ireland (SONI) - not so long ago NIE was required to sell SONI to prevent the northern company having too much influence in the market.
This proposed sale is bad news for Northern Ireland and, therefore, I am dismayed by the DETI Minister’s compliant response. It will leave the government of the Republic of Ireland with a dominant position in almost every aspect of energy generation, supply, distribution and retail across the island. It makes a nonsense of all British and European policy regarding the unbundling of energy network and the promotion of competitive markets.
ESB has presided over wholly inefficient state owned power stations in the Republic, with huge political and union resistance to ESB modernising, with the suspicion that under the existing single market Northern Ireland consumers are already paying higher prices as a result. Such can only be exacerbated by this full take-over.
In consequence of this deal I fear that when a choice arises between cutting jobs in the north or the south, or when a decision has to be made between an investment in Belfast or Dublin, Northern Ireland will be the loser.
The political and economic consequences of this deal, which is why I am so disappointed in DETI’s response, are immense. Future major decisions about Northern Ireland’s energy infrastructure and supply will now ultimately be approved by Dublin politicians, whose primary loyalty is to consumers and voters in the Republic.
While this anti-competitive deal may serve the political agenda of some, in further aligning our economic destiny with that of the bankrupt Republic, it does not serve the interests of Northern Ireland’s economy or consumers.
Why is the DETI Minister standing back and why under this DUP ministry have we not seen greater emphasis on integrating Northern Ireland energy market into that in Great Britain and why there has been such a complete failure to introduce competition into the domestic market here?”
