Ireland Postpones Privatisation of Bord Gais Energy

The three final bids for Ireland’s Bord Gais Energy fell short on Wednesday, pushing the government to revise its privatisation plans for the retail unit of its gas utility.

The Government has therefore deferred the sale of Bord Gais. 

Minister for Communication, Energy and Natural Resources Pat Rabitte said that none of the bids submitted by Blackstone Group, Virdian Group and Centrica were at “an acceptable value.” 

Rabitte said that future options for the energy business would be reviewed. He said that his department and New Era, the state agency supporting the Government for the sale, would work on alternatives to complete the separation of Bord Gais Network and Bord Gais Energy in line with EU energy laws. 

The sale, for an estimated value of 1-1.5 billion euro, would have helped to achieve the 3 billion euro asset sale target agreed with the EU-IMF.

“The Minister for Public Expenditure and Reform and I have been clear from the outset of the offer process that Bord Gáis Energy would only be sold if a sale price was achieved which fully recognises the inherent value of the business,” explained Rabitte.