The Utility Regulator is today publishing a decision paper announcing the cancellation of Generating Unit Agreements (GUAs) in Northern Ireland. Generating Unit Agreements (GUAs) are the contracts between Power NI Energy Limited (effectively its Power Procurement Business (PPB)) and electricity generators in Northern Ireland. PPB manages the GUAs on behalf of consumers and the net benefit or loss made by PPB is passed to consumers as an element of the PSO (Public Service Obligation) levy.
This decision is expected to save around £4m a year, which will be reflected in lower bills for electricity consumers.
The announcement follows an initial consultation on 10 March 2011, a second consultation on 9 September 2011 and an update notice published on 22 December 2011. After considering the responses to these consultations, we carried out detailed economic and sensitivity analysis into the financial position of the GUAs. Following this analysis, and after considering all relevant policy considerations, we have decided to cancel five out of the seven GUAs remaining in Northern Ireland with effect from 1 November 2012. The GUAs which will be cancelled are:
• Ballylumford GT1
• Ballylumford GT2
• Coolkeeragh GT8
• Kilroot GT1
• Kilroot GT2
We have informed the Department of Enterprise, Trade and Investment, PPB, all electricity licence holders and the Consumer Council of our intention to cancel the GUAs.
Three non-confidential responses were received to the second consultation in September 2011 and can be viewed below: