NIE reports revenue increase of £6.8m

NORTHERN IRELAND’S electricity provider, NIE, has reported a £6.8 million (€7.4 million) jump in revenue from its continuing operations to £91.6 million for the first half of this year.

NIE, which transmits electricity to more than 790,000 homes and businesses, grew its overall operating profit in the same period to £37.7 million from £23.2 million.

Commenting on the latest figures, a spokesman for NIE said: “These results are in line with expectations.”

NIE, which is part of the Viridian Group, is subject to a price control in the North which determines the revenue it can earn and the prices it can charge. The company is responsible for the electricity transmission and distribution network in Northern Ireland. It derives its revenue from charges it levies for use of the distribution system on electricity suppliers such as its sister company, NIE Energy, which is also part of the Viridian Group.

The group has been owned by the Bahrain-based investment bank Arcapita since 2006.

The latest accounts show NIE’s total capital expenditure in the six months to September was £45.7 million.

The company is working with EirGrid to develop a new Tyrone-Cavan interconnector which will further connect the electricity networks of Northern Ireland and the Republic. NIE completed the sale of Soni, its Belfast-based transmission system operator, to EirGrid for £30 million during the period under review.

NIE’s latest results show it enjoyed strong cash flows from operating activities in the six months to September, up from a corresponding £1.2 million in 2008 to £17.6 million in 2009. The company’s net debt also increased in the first half of the year by £70.9 million to £537.5 million.

During the period under review NIE’s defined benefit pension scheme liability increased from £77.9 million in March 2009 to £134.6 million by September 2009.