ESB has entered the UK electricity supply market for the first time with a €28 million contract. ESB Independent Energy, a company owned by ESB Group, has signed a contract worth £20 million (€28 million) for the supply of electricity to Smartest Energy, a UK electricity trader.
The contract represents ESB's first entry into Britain's electricity supply market. The UK company will sell on the power to customers.
The power is being sourced at ESB's Coolkeeragh plant in Northern Ireland and transfered via the Moyle Interconnector. It is the first time that the interconnector has been used to supply Britain from Northern Ireland.
Coolkeeragh has been in commercial operation since April 2005. The plant has suffered from some technical problems and commercial difficulties.
The ESB said in in a statement: "Coolkeeragh has experienced difficult trading conditions due the upward trend in international fuel prices, particularly gas. However, ESB's investment strategy takes a long-term view and a lean early start was predicted for the new plant. Notwithstanding these early trading circumstances, power generation investment is calculated on a 10-15 year return on investment. ESB Coolkeeragh is no different."
The contract represents the first supply activity by ESB in the British energy market. ESB has had a presence in this market since 1992 as joint-owner of the Corby Power Station for which it is responsible for plant operations and maintenance. ESB is currently developing an 800 megawatt plant at Marchwood near Southampton.
SmartestEnergy is a wholly-owned subsidiary of the Marubeni Corporation of Japan. Marubeni Corporation was founded in 1858 and incorporated in 1949. It is one of Japan's leading general trading houses, managing businesses across a wide range of industrial sectors throughout the world. It has more than 24,000 employees worldwide.
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