The utility firm Viridian has called on the energy regulator, Mr Tom Reeves, to ensure there are no further delays in awarding contracts for the Republic's two new power stations.

Viridian was a losing bidder in the competition but Mr David de Casseres, managing director (generation), said delays in awarding the contracts could result in no company being able to commission new plants in time for winter 2005/2006.

"It is critical these plants are able to meet that target date because otherwise the system could face serious difficulties," he said.

Viridian is the second-largest generator in the Republic after the ESB. Its Huntstown plant in north Co Dublin generates about 340 megawatts of power.

Earlier this week, Mr Reeves said the final awarding of contracts would take place on Tuesday, December 23rd. It was supposed to happen this week. The Commission for Energy Regulation (CER), which is headed by Mr Reeves, did not say what was causing the delay.

Mr de Casseres said the delays were intensely frustrating for everyone in the electricity industry and he said Mr Reeves must stick to his December 23rd deadline. "There is a concern that time is running out. We need to move on this rapidly," he said. "The regulator needs to stick to the December 23rd deadline come what may. To let things creep into the new year would be very serious."

The CER said yesterday that December 23rd remained the planned date for completing arrangements with the two preferred bidders, Aughinish Alumina and Tynagh Energy.

Tynagh is a consortium consisting of Mountside Properties, Turkish firm Gamma Construction and Investec Bank of South Africa. The consortium plans to build a 400 megawatt plant near the site of old Tynagh Mine in Co Galway.

There was surprise in electricity circles when Tynagh was named as a preferred bidder, with long-established names such as Bord Gáis, Viridian, Scottish & Southern Energy and AES Electric losing out.

Some market sources have suggested that Viridian will build another station beside Huntstown regardless of the competition outcome, but this has been denied. According to a recent note from Merrion Stockbrokers, a more likely outcome is a share buyback programme. The stockbroker estimated this could boost earnings by 8 per cent.