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Ervia

(Redirected from Bord Gais Eireann)

Ervia, previously known as Bord Gáis[5] or Bord Gáis Éireann (Irish pronunciation: [ˈbˠoːɾˠd̪ˠ ˌɡaːʃ ˈeːɾʲən̪ˠ]; meaning "Gas Board of Ireland"), is a multi-utility company distributing pipeline natural gas and dark fibre services in Ireland. The state-owned company has built an extensive network across Ireland.[6]

Ervia
Company typeStatutory corporation
IndustryPublic Utility
Founded1976; 48 years ago (1976) in Cork, Ireland[1]
Defunct1 June 2024 (1 June 2024)
SuccessorGas Networks Ireland
HeadquartersCork, Ireland
Key people
Products
Revenue€506m (2014) [3]
Number of employees
1,300 (2015) [4]
Subsidiaries
Websitewww.ervia.ie

In 2014 the Bord Gáis Energy division was sold to a consortium led by Centrica,[7] and the Bord Gáis name was transferred as part of the sale. Bord Gáis Éireann was therefore renamed Ervia in June 2014 and as a result no longer sold gas directly to customers. Ervia was the ultimate parent company of dark fibre operator Aurora Telecom. In June 2024, all functions, assets and liabilities of Ervia were transferred to Gas Networks Ireland and Ervia was dissolved.

History

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Bord Gáis Éireann was established as a semi-state company by the Irish government in 1975 to replace a series of private-sector small city-based gas companies, some of whom had got into financial trouble. The company was originally established as a private limited company by shares, Bord Gáis Éireann Teoranta, before being converted to a statutory corporation under the Gas Act 1976, the primary legislation under which BGE operates.

The oldest of the small private companies was the Alliance and Dublin Consumers' Gas Company, which had been founded in the early nineteenth century by Daniel O'Connell, a prominent Irish politician and Lord Mayor of Dublin. After initially supplying the company (known simply as Dublin Gas by the 1980s) with wholesale natural gas, Bord Gáis acquired the assets of the company when it went into receivership in 1987, including its head office in D'Olier Street, Dublin. Other town gas companies were acquired by Bord Gáis in Cork, Limerick, Clonmel, and Kilkenny.

In 2002, Bord Gáis Éireann sold the landmark art deco Dublin Gas head office building in D'Olier Street, Dublin to Trinity College Dublin. This building was designed by Robinson and Keefe Architects in about 1928. The exterior is clad in grey and black stone. The interior which was originally lit by Gasoliers still remains as a protected structure. Bord Gáis moved to purpose built premises in Foley Street, Dublin, which is now the main offices of Bord Gáis Energy. Bord Gáis now have offices at Lower Mount Street, Dublin.[citation needed]

For nearly two decades the main supply of gas available for Bord Gáis came from a Marathon Petroleum owned gasfield near Kinsale, off the Cork coast. This gas field had been found in 1971, the same year as the foundation of the Nuclear Energy Board. This gas field comes ashore at Inch, County Cork.

Deregulation of the Irish gas market

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Beginning in the early 2000s Ireland's state owned public utilities underwent major reform thanks to the adoption by EU members of the European Union's Third Energy Package. This required vertically integrated utilities such as Bord Gáis Éireann to legally demarcate and split into two roles: the Transmission System Operator (TSO) and the Distribution System Operator (DSO) although a combined DSO/TSO was permissible as long as the two were ring-fenced from one another [8][9] This resulted in two new "arms length" entities being created inside the Bord Gáis group; Bord Gáis Networks and Bord Gáis Energy Supply. A similar situation took place with the Electricity Supply Board with it being split into two main units, legally distinct and separate; ESB Networks and ESB Customer Supply, now called Electric Ireland, although both being owned by the ESB Group.

On 18 February 2009 Bord Gáis Energy Supply rebranded as Bord Gáis Energy and competed in a new, fully deregulated gas market, legally separate and distinct from the rest of Bord Gáis Éireann. As part of the overall opening up of the energy market in Ireland as a whole Bord Gáis Energy entered the deregulated electricity market offering dual fuel bundles to consumers. Other companies including Airtricity and Electric Ireland also began competing with Bord Gáis Energy in the gas sector, with Bord Gáis Networks being impartial towards all companies who wished to utilise the gas network. It was expected BGE would be no different than any other gas provider.

Sale of Bord Gáis Energy

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A condition of the EU/IMF bailout programme for Ireland required the Irish government to sell off some state owned assets to help pay down loans and reduce Ireland's debt burden. In February 2012 the Irish government announced it would sell Bord Gáis Energy as required under the bailout terms.[10]

In March 2014 Bord Gáis Éireann confirmed it would sell its customer supply arm Bord Gáis Energy to a consortium made up of Centrica, Brookfield Renewable Energy and iCON Infrastructure to the value of €1.1 billion.[11] The sale involved the splitting of the group's retail unit among the three buyers. The main retail division would be bought by Centrica, while its wind assets under SWS would be acquired by Brookfield Renewable Energy Partners and iCON infrastructure acquiring Northern Ireland based Firmus Energy. As part of the deal the Bord Gáis name would go to Centrica requiring the rump entity to be renamed.

In June 2014 Bord Gáis Éireann was renamed Ervia[12] becoming a holding company of three distinct but complementary utility firms: Gas Networks Ireland (formerly Bord Gáis Networks), Irish Water and Aurora Telecom.

Dissolution

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In October 2020, the government of Ireland decided that Ervia would be dissolved and its functions integrated into Gas Networks Ireland.[13]

The Gas (Amendment) and Miscellaneous Provisions Act 2024, an act of the Oireachtas, provided for the dissolution of Ervia.[14] This took effect on 1 June 2024.[15][16] This left Gas Networks Ireland as a standalone entity owned by the State.

Subsidiaries

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Gas Networks Ireland

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Bord Gáis Networks Logo

Gas Networks Ireland (Irish: Líonraí Gáis Éireann[17]) owns, and is responsible for the operation, maintenance and development of Ireland's natural gas transmission and distribution networks, consisting of over 14,600km of pipeline.[18][19] The network provides gas to customers in all major Irish cities, along with several towns across the country. Numerous suppliers provide gas services to customers and businesses via this network of pipelines.

Two interconnectors link the pipeline network to Scotland (with a spur from one of the interconnectors linking to the Isle of Man supplying the Manx Utilities Authority).

Most of its modern gas supply is imported, though a new gas field known as the Corrib field off the County Mayo coast came on stream in 2015.[20] However, Ervia only purchases a small amount of the offtake; the majority is traded on the Intercontinental Exchange.[citation needed]

Aurora Telecom

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Aurora Telecom specialises in providing dark fibre services to the private sector. Due to being a subsidiary company of Gas Networks Ireland,[21] Aurora Telecom is able to utilise the former's extensive gas pipeline network to lay fibre optic lines,[21] principally in Dublin, though with an owned and operated network now stretching from the capital to Cork, Limerick and Galway via several towns including Athlone, Mullingar and Ennis.

Former operations

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Bord Gáis Energy

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Main article: Bord Gáis Energy

Bord Gáis Energy was previously the retail (industrial, commercial and residential) division of Bord Gáis Éireann. In February 2012 the Irish government announced its intention to sell Bord Gáis Energy as part of the reforms required following the banking crisis bailout and finalised the deal in June 2014. Today Bord Gáis Energy is a completely independent entity from Ervia.

Bord Gáis retail network

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Bord Gáis Éireann maintained twelve stores (branded Energy Supply Stores) around the country, however they are run on a franchise basis and not by Bord Gáis itself. In 2002 Bord Gáis Natural Gas Showroom in D'Olier Street, operated by the company itself, was closed, in 2006 its Cork company-owned showroom was also closed.

Irish Water

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Main article: Irish Water

The Water Services Act 2013 created Irish Water as a subsidiary of Bord Gáis Éireann,[22][23] to provide "safe, clean and affordable water and waste water services" to water users in Ireland.[24] Public concerns on operational,[25] documentation,[26][27] and financial[28] issues were highlighted throughout the initial months of the subsidiary's operations.[29]

Irish Water is accountable to two regulatory bodies: the Commission for Regulation of Utilities (CRU), the economic regulator for the water industry; and the Environmental Protection Agency (EPA), the environmental regulator.[30]

On 31 December 2022, Irish Water was renamed Uisce Éireann. On 1 January 2023, Uisce Éireann was separated from Ervia and established as a standalone national water authority.[31]

SWS

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In late 2009 Bord Gáis Éireann bought the wind energy company SWS.[32]

However, as part of the large scale EU/IMF mandated divestiture of many state assets mid 2014 the company was sold to Canadian energy firm Brookfield Renewable Energy Partners for US$680 million as part of the sale of Bord Gáis Energy to British energy giant Centrica.[33]

Firmus Energy

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Main article: Firmus Energy

Bord Gáis had a plan to develop the gas market in Northern Ireland. A pipeline from Carrickfergus to Derry was completed in October 2004 and now serves Coolkeeragh Power Station. A second pipeline, known as the south–north pipeline, was commissioned in October 2006. It runs from Gormanston in the Republic of Ireland to join the Carrick/Derry pipeline near Antrim creating an all-Ireland network and providing redundancy in case of problems with either Scotland - Northern Ireland pipeline or the Scotland - Ireland interconnectors.

The Utility Regulator for Northern Ireland awarded Bord Gáis a licence to supply homes and businesses in the towns and cities near the two pipelines - Antrim, Armagh, Ballymena, Ballymoney, Banbridge, Craigavon, Derry, Limavady and Newry - where the local subsidiaries of BG used the trading name of Firmus Energy. On 1 December 2005, Firmus launched their first supply in Northern Ireland, to the large Michelin tyre factory in Ballymena.[34] On 25 April 2006 Firmus connected its first residential customers in Derry.

As part of the Irish government's disposal of state owned assets Firmus Energy was sold in March 2014 to iCON Infrastructure.

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On 4 July 2008, an "arms-length" subsidiary of Bord Gáis, Gaslink was established to perform the role of transmission and distribution system operator. However, as part of cost-cutting measures on 1 August 2015 Gaslink was abolished and its responsibilities rolled back into Gas Networks Ireland.[35]

Main offices

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References

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  1. ^ "Gas Act 1976". Irishstatutebook.ie. 19 July 1976. Archived from the original on 24 October 2009. Retrieved 31 July 2014.
  2. ^ "Organisational Structure". Ervia. Archived from the original on 26 October 2018. Retrieved 25 October 2018.
  3. ^ "ervia - Annual Report and Financial Statements 2014" (PDF). ervia.ie. Retrieved 11 September 2015.[permanent dead link‍]
  4. ^ "ERVIA EXPLAINED". Ervia. Archived from the original on 21 June 2015. Retrieved 11 September 2015.
  5. ^ "ESB joins Bord Gáis in deciding it is better to borrow from Peter to pay Paul". The Irish Times. 29 July 2014. Archived from the original on 2 August 2014.
  6. ^ "View the Network". Pipeline Maps. Bord Gáis. Archived from the original on 11 July 2010. Retrieved 26 July 2010.
  7. ^ "Bord Gáis Energy to be sold to consortium led by Centrica for €1.12 billion". RTÉ News. 13 December 2013. Archived from the original on 29 October 2014. Retrieved 15 December 2013.
  8. ^ Directive 2009/72/EC of 13 July 2009 of the European Parliament and of the Council concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC
  9. ^ Directive 2009/73/EC of 13 July 2009 of the European Parliament and of the Council concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC
  10. ^ "€3bn sale to include parts of ESB, Bord Gáis". RTÉ. 23 February 2012. Archived from the original on 27 July 2024. Retrieved 11 September 2015.
  11. ^ "Bord Gáis Energy set to be sold for €1.12bn". Irish Times. 13 December 2013. Archived from the original on 4 March 2016. Retrieved 11 September 2015.
  12. ^ "Ever heard of Ervia? That's what Bord Gáis Eireann is now called". The Journal. 20 June 2014. Archived from the original on 4 March 2016. Retrieved 11 September 2015.
  13. ^ "Minister O'Brien welcomes the commencement of Water Services Act and introduction of Uisce Éireann" (Press release). Dublin: Government of Ireland, Department of Housing, Local Government and Heritage. 20 December 2022. Archived from the original on 8 November 2023. Retrieved 30 May 2024.
  14. ^ Gas (Amendment) and Miscellaneous Provisions Act 2024, s. 6: Transfer day (No. 11 of 2024, s. 6), "On and from the transfer day Ervia (in this Act referred to as the “dissolved body”) shall stand dissolved.". Enacted on 1 May 2024. Act of the Oireachtas. Retrieved from Irish Statute Book.
  15. ^ "Corporate governance". Gas Networks Ireland.
  16. ^ Gas (Amendment) and Miscellaneous Provisions Act 2024 (Transfer Day) Order 2024 (S.I. No. 219 of 2024). Signed on 13 May 2024 by Eamon Ryan, Minister for the Environment, Climate and Communications. Statutory Instrument of the Government of Ireland. Retrieved from Irish Statute Book.
  17. ^ "Téarma.ie". téarma.ie. Archived from the original on 27 July 2024. Retrieved 30 August 2022.
  18. ^ "Our network". Gas Networks Ireland. Archived from the original on 4 November 2023. Retrieved 4 November 2023.
  19. ^ "Policy Information: Gas". Government of Ireland. Department of the Environment, Climate and Communications. 12 June 2020. Archived from the original on 4 November 2023. Retrieved 4 November 2023.
  20. ^ Kent, Sarah (30 December 2015). "Ireland's Corrib Field Now Producing Natural Gas". The Wall Street Journal. Archived from the original on 4 November 2023. Retrieved 4 November 2023.
  21. ^ a b "About Aurora Telecom". auroratelecom.ie. Archived from the original on 29 May 2024. Retrieved 29 May 2024.
  22. ^ "Water Services Act 2013". Irish Statute Book. 20 March 2013. Archived from the original on 1 October 2015. Retrieved 31 July 2014.
  23. ^ "Irish Water to be Bord Gais Eireann subsidiary". Sunday Business Post. 17 April 2012. Archived from the original on 23 September 2016. Retrieved 11 September 2015.
  24. ^ "About Bord Gáis". Bord Gáis. 1 January 2014. Archived from the original on 22 July 2014. Retrieved 31 July 2014.
  25. ^ Alison Comyn (16 July 2014). "Residents' rage after paths are ripped up". Irish Independent. Archived from the original on 21 October 2014. Retrieved 31 July 2014.
  26. ^ Andrews, Kernan (24 July 2014). "Healy questions Irish Water letter demanding bank account details". Advertiser.ie. Archived from the original on 4 August 2014. Retrieved 31 July 2014.
  27. ^ Pattison, Brynmor (14 July 2014). "Irish Water: Forms will require householders' PPS numbers and more". Irish Mirror. Archived from the original on 17 July 2014. Retrieved 31 July 2014.
  28. ^ "Irish Water spent €50m despite order to use Bord Gais expertise". Irish Independent. 13 January 2014. Archived from the original on 21 October 2014. Retrieved 31 July 2014.
  29. ^ Paul Melia and Sarah Stack (17 July 2014). "No one wants to pay the fees, admits Irish Water boss". Irish Independent. Archived from the original on 21 October 2014. Retrieved 31 July 2014.
  30. ^ "CER Role ("Working with the EPA")". Commission for Energy Regulation. Archived from the original on 9 August 2014. Retrieved 8 August 2014.
  31. ^ "Minister O'Brien welcomes the commencement of Water Services Act and introduction of Uisce Éireann" (Press release). Dublin: Government of Ireland, Department of Housing, Local Government and Heritage. 20 December 2022. Archived from the original on 4 November 2023. Retrieved 4 November 2023.
  32. ^ "Bord Gáis buys SWS for €500m". Irish Examiner. 5 December 2009. Archived from the original on 4 March 2016. Retrieved 11 September 2015.
  33. ^ "Bord Gáis buys SWS for €500m". The Globe and Mail. 25 March 2014. Archived from the original on 4 March 2016. Retrieved 11 September 2015.
  34. ^ Morton, Robin (2 December 2005). "Tyre plant first in switch to gas". BelfastTelegraph.co.uk. Archived from the original on 14 October 2012. Retrieved 31 July 2014.
  35. ^ "Publications". Gas Networks Ireland. Archived from the original on 20 March 2016. Retrieved 11 September 2015.
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