THE North's electricity regulator has put forward proposals aimed at opening the market to increased competition.

The proposals, which have been presented in a consultation document, could eventually lead to the ESB or any independent electricity generator in the Republic being able to sell power to major users in the North.

The current arrangement, and the prospect of wider differences between electricity prices in the North and those in Britain and the Republic "is not acceptable", said Mr Douglas McIldoon, the Northern Ireland director general of the UK regulator, Offer.

Northern Ireland Electricity (NIE), has welcomed the report's publication, and said it would submit any views and alternative proposals it might have in due course.

Under a series of long term contracts, NIE buys all the electricity from the three generating companies in the North and sells it on to customers.

But the regulator has proposed that large customers and other potential suppliers would be able to sign contracts directly with the three main generators in the North or companies in the Republic via the interconnector.

If the proposals are implemented, the ESB's power stations could sell electricity to large users in the North.