ESB to buy NI Electricity for €1.2bn

ESB has agreed to buy Northern Ireland Electricity (NIE) from the Viridian Group for €1.2 billion.

Under the deal, ESB will also acquire associated companies that provide electrical construction and maintenance services, including NIE Powerteam Ltd and Powerteam Electrical Services (UK) Ltd.

If the transaction is approved by competition authorities, the State company will own both grids on the island which are interconnected and part of a single electricity market.

ESB will also assume obligations of the NIE Group, including those under a €211 million Eurobond.

The deal is expected to be completed by the end of the year. NIE will continue to operate as a stand-alone business, and will retain its brand.

NIE owns the electricity transmission and distribution network in Northern Ireland. It is responsible for the planning, development, construction and maintenance of the network, and the operation of the distribution network.

The Northern Irish domestic electricity market was recently opened to competition when rival Airtricity recently began selling electricity to householders in Northern Ireland. Airtricity already operates in the Republic's domestic electricity market as a rival to ESB and Bord Gáis.

ESB chief executive Padraig McManus said the company was committed to delivering the significant investment in Northern Ireland’s transmission and distribution networks needed to deliver common energy sustainability policy objectives over the coming years.

The NIE Group employs about 1,300 people. Speaking on RTÉ's Morning Ireland, Mr McManus said ESB would not be seeking redundancies in the company.

Northern Ireland's energy minister Arlene Foster said she had met with both NIE and ESB about the proposed sale, and had also discussed it with the regulator and Minister for Communications and Energy Eamon Ryan.

“I have received assurances from ESB on a range of issues relating to the transaction. These include ESB investment plans, the importance of securing existing jobs, and maintaining the identity of the electricity network business in Northern Ireland," she said.

"I will continue to keep a close watch as the transaction proceeds towards completion, to ensure the interests of electricity consumers in Northern Ireland are being properly considered."

She said governments in on both sides of the border had committed to increasing the levels of renewable power generation, which would require significant strengthening of the grid.

She welcomed ESB's assurances of its commitment to fund and construct the infrastructure in Northern Ireland, in addition to delivering on similar commitments in the Republic.