Thomas P. Broughan
Question:11. Deputy Thomas P. Broughan asked the Minister for Communications, Energy and Natural Resources his views on the current situation regarding the sale of Bord Gáis Energy. [51566/13]
View answerWednesday, 4 December 2013
Questions (11, 13)
Thomas Pringle
Question:13. Deputy Thomas Pringle asked the Minister for Communications, Energy and Natural Resources his plans to sell Bord Gáis Energy in the future despite the final bids being lower than he expected; his views on whether extending the deadline would have any impact on the value of any bids; and if he will make a statement on the matter. [51688/13]
View answerWritten answers
I propose to take Questions Nos. 11 and 13 together.
As I announced on 27 November, I have confirmed to Bord Gáis Éireann that none of the final bids received for the Bord Gáis Energy business are at an acceptable value at the present time. This decision was based on the advice I received that the current bids are not a fair reflection of the strength and potential of the Bord Gáis Energy business. As the Deputies may be aware, the Gas Regulation Bill recently completed its passage through the Oireachtas. The purpose of this Bill is to provide for the restructuring of Bord Gáis Éireann, including the sale of the Bord Gáis Energy business. In the course of the debates on this Bill, several Deputies questioned whether the State should proceed with the sale of the Bord Gáis Energy business and whether the sale would amount to a fire sale of assets. I have on several occasions reiterated to this House that there would be no fire sale and that disposals would be undertaken only when market conditions are right.
The decision not to proceed with the current bids for the Bord Gáis Energy business underlines my commitment and reflects my resolve to ensure that the State achieves value from the State asset disposal process.
The sale process was led by Bord Gáis Éireann and overseen by a Government Steering Group which included officials from my Department, the Departments of Public Expenditure and Reform and Finance, and the NewERA unit of the NTMA. I am advised that the process was conducted in a professional, open and transparent manner. The sale process has been underway for over six months, with every effort made to achieve an acceptable value for the Bord Gáis Energy business. It was ensured that all bidders had ample time to submit their final offers.
The Minister for Public Expenditure and Reform and I will now consider options for the the Bord Gáis Energy business. The enactment of the Gas Regulation Bill keeps all options open, including a future sale of the company which would require this enabling legislation. My Department, along with NewERA, will work with BGÉ to ensure continued investment in and development of Bord Gáis Energy, which is a growing and successful business, while also completing the separation of Bord Gáis Networks and Bord Gáis Energy as required by the EU Gas Market Directive.