The value of the contract for the Republic's next power station looks set to rise to about €1.8 billion as a result of changes made to the tender by the Commission for Energy Regulation (CER).

The CER said yesterday the seven consortiums bidding for the contract could potentially supply up to 531 megawatts from the new station, rather than the 400 megawatts originally specified. Based on the 131 extra megawatts involved, the value of the contract looks set to total €1.8 billion.

The new limits have been agreed with the ESB which will be taking the power and the ESB National Grid which regulates the amount of supply the State needs in the years ahead. While the value of the contract looks set to rise, the decision is ultimately one for the CER.

The danger of future shortages means the Government will be anxious to get as much power from the new station as possible.

The seven consortiums that have expressed an interest in the project are: AES Electric; Aughinish Alumina Ltd; Ireland Power Energy Ltd; Mountainside Properties; Rolls Royce Power Ventures Ltd; Scottish & Southern Energy plc/Bord Gáis Éireann; and Viridian Power Ltd. They have until October 20th to submit their bids.

The target date for having the new station operating remains December 1st, 2005 and generators that can meet this deadline will be given an advantage in the competition. However, generators with capacity available after December 2006 will also be facilitated in this competition, according to the CER document.

An evaluation team will consider the bids. It will comprise CER officials, plus advisers and consultants hired by the regulator. The whole process is expected to cost €1 million.

Mr John Loughrey, the former secretary-general of the Department of Transport, Energy and Communications, will oversee the whole process.