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Company Report: Mutual Energy

 

Mutual Energy Ltd owns the Moyle electricity inter-connector from Islandmagee to Scotland, the natural gas pipeline from Scotland to Ballylumford, the natural gas pipelines to Belfast from Ballylumford and the extended north-west gas network known as West Transmission.

Mutual Energy is controlled by a board of directors elected from its 28 members who are, in turn and in rotation, appointed by the existing members. In 2017, six former members retired but were replaced by 15 new members, including Helen Kirkpatrick, Jamie Delargy and Michael McKernan. Michael McKernan has, more recently, also been elected as a non-executive director.

The financial results for Mutual Energy are prepared on a conventional trading basis subject to adjustments to total revenue for extra unusual segmental revenue agreed with the Utility Regulator as an offset to the loss of revenue following recent, now ended, faults in the Moyle Interconnector. This added £12.3m to revenue in the most recent year and £17.2m a year earlier. The expectation is that this additional customer charge has now been removed.

In 2017 faulty low voltage under-water cables were replaced and, coincidentally, a high voltage cable fault discovered in February 2017 has also been repaired and full capacity has been restored.

Mutual Energy has a fully operational natural gas project at Maydown to deliver on the promise of gas to seven towns in the west.

Of the total group revenue of £63.2m, £30.4m was earned by the Moyle Inter-connector, £24.7m was attributed to the natural gas pipeline to Scotland and £8m was attributed to the Belfast area gas pipelines.

The largest expenditure each year is the cost of interest on borrowed capital. In the year to March 2018, interest costs were £19.9m. Longer-term borrowing reduces each year and in March totalled over £275m, £6m less than a year ago.

Belfast Telegraph