Committee Reports::Report No. 03 - Bord Gais Eireannn::19 December, 1985::Appendix


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Committee Reports > List of Committees > Joint > 1985 > Committee on Commercial State-Sponsored Bodies > Report No. 03 - Bord Gais Eireannn

APPENDIX 5

Estimate of Cost of Subsidies by BGE to NET & ESB in 1984

Cost* of Heavy Fuel Oil (HFO)
(Barges, f.o.b. Rotterdam lows)		:	$140 per tonne
HFO Energy equivalent per metric tonne		:	403 therms
	1 Therm	:	109.9 cu.ft. of
			Kinsale Natural Gas.
Exchange Rate*		:	IR£ = US$1.15
HFO Equivalent price		:	30.2 pence per therm
HFO Landed price in Cork		:	34.2 pence per therm
Estimated Price charges to NET		:	14 pence per therm
NET usage** in 1984		:	20,000 mscf
			20 × 20,000 × 10⁶
Cost of Subsidy to NET, £m.		:	- - - - - - - - - - -
			109.9 × 10² × 10⁶
		=	£36m.
Price charged to ESB		:	24 pence per therm
ESB usage** in 1984		:	56,000 mscf
			10 × 56,000 × 10⁶
			- - - - - - - - - -
			109.9 × 10² × 10⁶
		=	£51m.

* October 1985.

** BGE annual report for 1984.