Gas Networks Ireland (GNI) had to negotiate a £1,671,183 six month energy supply contract with SSE Energy Supply in June 2022 in “extreme urgency” to maintain power to its compressors in Scotland, after its existing supplier went out of business, according to a transparency report published on 11 January.
A report on the contract said it was negotiated without a prior call for competition, because of “extreme urgency brought about by events unforeseeable for the contracting entity”.
Gas Networks Ireland was advised that its existing electricity provider was exiting the industrial and energy market in June 2022. GNI said that “Due to market volatility at the time other energy providers were not bidding for new tenders.
“Due to the urgency, unforeseen circumstances, extreme pricing volatility, Gas Networks Ireland made the decision to proceeded to award a six month contract to SSE Energy Supply to ensure continuity of supply of electricity to compressor station sites in Scotland”.
GNI’s pipeline network in Scotland connects to the Scottish gas transmission network ar Moffat and transports gas to two interconnectors connecting to the gas network in the Republic of Ireland and a pipeline owned by a third party that connects to the Northern Ireland gas network near Belfast.
The six month contract was concluded in October 2022.