POWER asset operator Mutual Energy insists it won't be out of pocket following last year's high voltage fault with a seabed cable on the Moyle interconnector which reduced its capacity from 450 to 250 megawatts.
The latest defect on previously-troubled electricity interconnector between Northern Ireland and Scotland, discovered in February, was described as "unprecedented in nature" but unconnected to the previous faults blighting the link and which were permanently resolved by the successful installation of additional cables in 2016.
Last year's fault occurred when a cable on the seabed sustained inexplicable damaged (some kind of strike is thought to have been a possible cause) and it had to be disconnected, and it was September before it returned to full commercial operation.
Mutual Energy, which crucially rakes in around half its annual revenues from the interconnector, says that given the unexplained nature of the fault, the "multi-million pound" cost of its repair will be met by its insurer, as it heralded 2017 otherwise as “a year of great progress".
Chair Regina Finn said: “We successfully navigated our Gas to the West project through the consenting process and it is now in the construction phase with project teams working at a number of locations across the west.
"Excitingly, the first customers in Strabane are already connected to the new gas network and we look forward to bringing the benefits of natural gas to more consumers in Northern Ireland in 2018 and the years ahead.”
Critically, the company's attention is now on financing and delivering the project, and she said it was the intention to complete the project financing early, to secure the best interest rates and therefore save money for customers while also avoiding some of the complications around Brexit.
"The plan is a repeat of the previous 100 per cent bond financing on our other assets so that transaction costs and borrowing rates are minimised for consumers," she said.
"In terms of project delivery, we are working closely with our contractors to manage a tight construction schedule and we will be focusing on making gas available this year in line with customers’ expectations.”
Elsewhere, Mutual Energy has just released its 10 per cent holding in the underground gas storage project at Islandmagee to InfraStrata Ltd.
Mutual's chief executive Paddy Larkin explained: “There has been some company restructuring at InfraStrata which, combined with our increasing focus on our expanding core business, including Gas to the West, makes it a good time to release our holding in Islandmagee Storage and leave InfraStrata with complete control.
"We very much continue to support the project as gas storage can undoubtedly bring significant long term benefits to energy consumers in Northern Ireland and beyond.”
He also said Mutual looked forward to continuing the work of the new gas market operator, which successfully started operations in October, making it easier and cheaper to move gas in, out and around Northern Ireland.
Meanwhile Mutual confirmed that Michael McKernan, previously a special advisor to ex-Stormont SDLP environment minister Alex Attwood and South Down MP Margaret Ritchie, has joined its board as a non-executive director.
