The awarding of a €1.4 billion contract to build the State's new power station has been delayed until next month. Emmet Oliver reports.

A preferred bidder was due to be selected by November 10th, but the six groups who have entered the competition were told recently that a preferred bidder had not yet been chosen.

This week, a report by Goodbody Stockbrokers focused on the imminent announcement. Goodbody is Viridian's broker and its analyst said, if Viridian won the competition, it would give the company "a new platform for earnings growth".

The Commission for Energy Regulation (CER) has declined to comment on the delay, but it is understood that it is seeking further information from the parties. The commission wants to ensure the competition is not open to challenge later and fair procedures are observed.

The CER has received six tenders from generators for the competition. The combined generating capacity of the six groups is approximately 2,000 megawatts. The competition is being held to address a projected shortfall in generation capacity in 2005.

The winner (or winners) will be offered a contract to supply the ESB with a total of up to 3,400 megawatts over a maximum of 10 years. Such a contract would be worth about € 1.4 billion.

Bidders are competing for the contract on the basis of price but they must also meet several minimum technical, financial and regulatory requirements.

The CER had been expected to notify preferred bidders by November 10th, with the winner announced and contracts signed by December 1st. Construction on the new generating plant would have then begun.

The groups who have entered the competition are believed to include: AES Electric, Aughinish Alumina, Ireland Power Energy, Mountainside Properties, Scottish & Southern Energy/Bord Gáis Éireann and Viridian Power.