Developing a shared energy vision: How Mutual Energy is working for consumers, protecting security of supply, and supporting decarbonisation

Developing a shared energy vision: How Mutual Energy is working for consumers, protecting security of supply, and supporting decarbonisation

Mutual Energy CEO Paddy Larkin discusses how Mutual Energy’s unique business model helps to lower energy costs in Northern Ireland, and how the company is supporting the energy transition through policy engagement, transitioning to renewable gases, and strategic investment.

Mutual Energy manages critically important electricity and gas infrastructure on behalf of Northern Ireland consumers. The company owns and operates two vital energy links between Northern Ireland and Great Britain, namely the Moyle electricity interconnector the Scotland to Northern Ireland gas transmission pipeline (SNIP), and sections of the onshore gas transmission network.

Security of supply

Mutual Energy’s assets are critical for Northern Ireland and play a crucial role in maintaining security of energy supply. During the course of a week in December 2024 Mutual Energy’s assets delivered approximately 90% of the electricity and gas consumed in Northern Ireland.

Larkin observes: “We take the reliance of Northern Ireland homes and businesses on the availability of our assets very seriously, operating and maintaining them to globally recognised ISO standards and appropriately investing in them to ensure they can continue to deliver benefits to local consumers.”

This ongoing investment includes a refurbishment of the Moyle Interconnector control system in recent years to enable the asset to continue to support the electricity system for decades to come.

“Our assets have had world class availability, including 100% historic availability of the Northern Ireland gas network and one of the highest interconnector reliabilities across the UK and Ireland,” Larkin adds.

Mutualisation

Mutual Energy is a wholly debt financed, mutualised business. This means the company has no shareholders and members are instead appointed and are responsible for representing energy consumers’ interests. The lack of shareholders means that the company does not need to pay dividends. As Paddy explains: “Our unique position allows us to focus solely on delivering value for Northern Ireland energy customers – reinvesting profits to deliver long-term benefits to consumers.”

In the last financial year, over £6 million was returned to electricity customers, split evenly between a general tariff rebate and charitable donations targeted at households struggling with energy costs. “We have also committed to return at least a further £30 million to consumers over the next five years,” Larkin adds. “In addition to this, we have saved customers more than £200 million to date due to our low cost of capital.”

Supporting decarbonisation

Achieving net zero will require the radical transformation of the energy sector over the next 30 years and Larkin is confident that Mutual Energy can play an important role in helping to facilitate this change.

“Our mutual structure enables the company to take an objective view on decarbonisation pathways. Our energy transition team is able to take a balanced and collaborative stance within the energy policy debate, and can help assist with the development of a shared vision across industry and government”, he says.

Larkin also believes an unprecedented amount of energy infrastructure investment is required to deliver the energy transition and is confident that Mutual Energy can help reduce the cost of this investment through the company’s ability to raise low-cost financing, particularly in relation to long-term strategic investments with high up-front capital requirements and long investment horizons. As Paddy explains, “efficient investment in strategic energy infrastructure, that allows better integration of renewable energy production, is essential to delivering a cost-effective energy transition”.

Mutual Energy is currently progressing a number of energy transition projects across areas including offshore grids, renewable gas networks, and long-duration energy storage. “We are eager and ready to make a significant contribution to the delivery of Northern Ireland’s energy transition,” Larkin concludes. “Both via engagement in the policy debate, and in delivering strategic infrastructure investments to support the widespread decarbonisation of the energy sector.”

To find out more visit:
www.mutual-energy.com/energy-transition

Paddy Larkin
CEO
Mutual Energy

Mutual Energy
W: www.mutual-energy.com
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