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

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.