Privatisation warning as minister unveils Bord Gáis Energy sale plan

THE entire gas network could be at risk if the ‘current trend of privatisation’ continues, the Cabinet was warned yesterday.

The warning came after the Communications, Energy and Natural Resources Minister published the Gas Regulation Bill 2013, which will allow the State to sell the energy business. Pat Rabbitte said the Bill provides for the restructuring of Bord Gáis Éireann (BGÉ) by establishing a gas networks subsidiary company which will remain in State ownership.

The sale of Bord Gáis Energy is part of the Government’s State assets disposal programme and is being pursued as part of Ireland’s bailout commitments. The sale process was formally launched in May last and will conclude by the end of this year.

The State will retain the gas networks along with the two gas interconnectors, however the energy business will be sold.

Mr Rabbitte previously said there has been ‘healthy interest’ in the company from bidders. And yesterday he confirmed that, once sold, half the proceeds will be available to fund employment while the remainder will be used to pay down debt. It’s understood the Government could fetch up to €1billion for the State asset.

He said: ‘I am pleased that the Government has approved my legislative propos- als to underpin the sale of BGÉ’s energy business and to also establish a gas networks subsidiary, consistent with EU requirements, which will facilitate the continued State ownership of the strategically important gas network infrastructure. I will be introducing the Bill early in the autumn session and I look forward to early enactment by the Oireachtas.’

But Sinn Féin TD Michael Colreavy said: ‘The entire gas network could be at risk if the current trend of privatisation continues. It is disappointing to see a Labour minister lead the sell-off of this State company, especially when Labour members voted to reject the sale of any State asset at the last party conference.’