Treasury Holdings, the property group planning to enter the electricity market, has accused wind farm groups of distorting the meaning of the Electricity Regulation Bill which is currently before the Oireachtas.

The company was reacting to claims made recently by the Irish Wind Energy Association, which said that classifying combined heat and power plants (CHP) as a renewable form of energy would destroy the wind farm sector. This was because CHP technology, if classified as renewable energy, could be offered up to 100 per cent of the market. However, a spokesman for Treasury Holdings said CHPs were being included in the Bill as "alternative" forms of energy, not as renewables. CHP plants combust gas and air to generate electricity and heat, but unlike conventional production, retain the heat for re-use.

The spokesman said CHP technology would not be sold to 100 per cent of the market, as it would only suit businesses which had a requirement for heat.