All-island electricity delayed

The planned launch of a single all-island electricity market has been delayed for four months to allow extra time to test the system.

The Single Electricity Market (Sem) was due to go live on July 1st 2007, but following a review by regulators in the Republic and Northern Ireland, it has been put back until November 2007.

The system, which will enlarge the electricity market and improve security of supply, is expected to reduce the costs of power generation in the long run.

"This extra time will ensure that the challenges associated with the implementation of these complex arrangements are fully addressed for all parties, including, most importantly, customers and market participants," said Noel Dempsey, Minister for Communications, Marine and Natural Resources.

However, he did stress that both governments remained committed to the development of such a system and welcomed confirmation from the regulatory authorities that the project is progressing successfully.

"We are confident that it will deliver wholesale market arrangements that will best serve the whole island of Ireland and electricity customers now and in the longer term," he said.

Energy company Viridian expressed disappointment at the delay, saying any such developments were unwelcome. "Properly implemented, the all-island market has the potential to bring sufficient benefits to consumers," said spokesman Robin Greer.

But he said a lengthy delay would add to the development costs and undermine the confidence of the industry and customers in the new system.

Northern Ireland Secretary of State Peter Hain welcomed the development of an all-island electricity market, saying he hoped it would become a blueprint for the rest of Europe. "Ultimately, it will deliver the best solution for the electricity customers of the island of Ireland," he said.