Profits at ESB’s Co Derry power plant rose 20 per cent to around €14 million last year, the State-owned energy group said on Monday. ESB’s UK arm owns a natural gas-fired power plant at Coolkeeragh, Co Derry, that supplies electricity to the all-Ireland market.
Accounts filed for Coolkeeragh ESB Ltd show that the business earned £12.1 million (€14m) profit last year, 20 per cent more than the £10 million the company booked in 2022. Pretax profit was almost £16 million, also more than 20 per cent of the previous year’s return of £13.2 million.
Martin Bellerby, Coolkeeragh director, said in his report filed with the accounts that gains from contracts to provide electricity to companies within the ESB group boosted profits.
The value of those contracts change according to movements in the wholesale price of electricity, which shifted sharply in 2022 and 2023. The accounts show that those movements gained Coolkeeragh £11 million in 2023. The company lost almost £9 million on the same contracts in 2022.
Operating profit slipped more than 80 per cent last year to £5.15 million from £23 million in 2022 as costs rose more sharply than turnover last year. Turnover rose 23 per cent to £320 million in 2023, from £260 million the previous year, the accounts show. However, costs were almost £315 million last year, from £237 million in 2022, a 34 per cent increase overall.
The accounts show that the Coolkeeragh plant was shut down for longer periods in 2023 than in 2022. They state that it was available to supply electricity 72 per cent of the time last year against 93 per cent the previous year. Mr Bellerby confirms that Coolkeeragh had “lower availability” last year.
The business paid a €30 million dividend to its immediate parent, ESB Asset Development (UK) Ltd, part of the larger Irish State-owned energy group. Coolkeeragh paid no dividend in 2022.
ESB said on Monday that the company paid the dividend in 2023 as there was “a sufficient accumulation of reserves in the company” to pay it last year. Net assets slipped to £21.3 million on December 31st last from £39.2 million 12 months earlier as a consequence of the dividend payment.
Mr Bellerby notes that energy markets remain volatile as a consequence of conflict in Ukraine and Middle East. “The directors will continue to monitor this evolving situation and consider any impacts on the company.”
Coolkeeragh emitted 375 grammes of carbon-dioxide for every kilowatt hour (KW/h) of electricity it generated last year, slightly less than the 382g produced in 2022. The average Irish home uses around 4,200 KW/h a year. The ESB’s long-term target is to cut emissions to 200g per KW/h. Burning gas to generate electricity is the main source of carbon-dioxide in power plants such as Coolkeeragh.
Separately, ESB also owns Northern Ireland Electricity (NIE) Networks, responsible for the North’s electricity grid and distribution systems. That company operates independently within the State group, with its own board. The Utility Regulator for Northern Ireland regulates the company and its activities.
NIE Networks is responsible for maintenance, repairs and construction of the North’s electricity grid.
ESB is the biggest player in the Irish energy market, owning power plants and a supply business with more than one million customers. The group reported in March that profits soared 33 per cent last year to €868 million.
