The Government is to promote the construction of two electricity interconnectors between the State and Wales at a potential total cost of €400 million.

The Minister for Communications, Marine and Natural Resources, Mr Ahern, said private companies would build, manage and own the interconnectors. He said no Exchequer money would be involved.

Mr Ahern said the Government wanted to test the market and if companies were willing to take on the project, the Republic would get an enhanced supply of electricity.

If demand was not there from private companies, the Government would consider other approaches, said Mr Ahern.

"In the event that the market does not respond, I will ask the Commission for Energy Regulation \ to host a tender competition for construction, management and ownership of regulated interconnectors."

He said he would ask the CER to minimise the risk and cost to Irish consumers. The interconnectors would be sub-sea cables able to each carry 500 megawatts of power. Mr Ahern said the projects could get under way by 2006.

He said while the interconnectors would end the Republic's reliance on indigenous electricity, the new structures would also enable the Republic to export power to European markets.

"We could end up as net exporters in the future, that cannot be ruled out." He said it was high time the Republic was integrated into the wider European energy market.

He said the ESB could bid for the contract. The private energy company Vayu also expressed an interest in the project last night.

Mr Ahern also announced the restructuring of the CER into a three-person commission. He said this was because the role and work of the CER had "grown enormously".

"I want an expanded CER to have the capacity to focus more directly on environmental, consumer and competitiveness issues. The creation of a new three-person commission will greatly assist to that end," he said.

He pointed out that ComReg was a three-person entity. The CER is currently headed by one commissioner, Mr Tom Reeves.