Airtricity promises to freeze prices for next three years

Wind energy firm Airtricity is making an aggressive pitch for new business customers in the next 12 weeks with a promise not …

Wind energy firm Airtricity is making an aggressive pitch for new business customers in the next 12 weeks with a promise not to increase its electricity tariffs for the next three years, writes Arthur Beesley, Senior Business Correspondent

Four days after the latest industry-wide tariff increase of 12.6 per cent was introduced, Airtricity has written to its 35,000 clients with a pledge to freeze its own tariffs until 2010.

New customers who switch to Airtricity before March 31st will be offered the same guarantee, according to a note on the company's website.

"One of the things that have enabled to us do this is that we've doubled our own self-generation capacity effectively in the last nine months," said David Brown, Airtricity sales and marketing director.

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"We now know that we've got this increased capacity online. On the basis of that going forward we have a better handle on our cost base."

Led by former Bord na Móna chief Eddie O'Connor, Airtricity claims its tariffs are already up to 10 per cent cheaper than the ESB's published rates.

The company targets the small and medium-enterprise market - businesses such as shops and hairdressers - as well as large corporates such as mobile firm Meteor and Permanent TSB.

The addition of new windfarms in Wexford, Cavan and Limerick to the firm's portfolio has brought its internal production capacity to 200 megawatts (MW) from 89 MW.

Thus the freeze on its tariffs coincides with a renewed effort to recruit new customers after a period of difficulty sourcing power from outside sources at cost-effective rates.

Controlled by National Toll Roads, Airtricity says it was unable grow its customer base due to a moratorium on additional wind entering the national grid and a lack of access to interconnector power.

The moratorium, which was lifted in early 2005, affected the issue of new connection offers.

The company has also criticised the high price of "top-up" electricity, power sourced from other suppliers when its own generation runs short of demand.

Airtricity withdrew from the domestic market last year, citing the high cost of alternative supplies. It had 8,000 domestic customers at that time.

In addition to its Irish business, the company has operations the US, Britain and elsewhere in Europe.