Ahern should try to sort out electricity battle

CURRENT ACCOUNT: Dermot Ahern was careful this week to avoid comment on the legal tussle between EirGrid and the energy regulator…

CURRENT ACCOUNT: Dermot Ahern was careful this week to avoid comment on the legal tussle between EirGrid and the energy regulator, Tom Reeves. With the ESB a notice party in the case, a two-week High Court hearing in October could cost up to €5 million in legal fees.

But the sub judice rule should not prevent the Minister for Communications and Natural Resources from working privately to settle what could be an unseemly court battle between State entities.

At stake is EirGrid's demand for control over detailed planning of the national grid, which is being separated from the ESB to ensure its fair operation in the liberalising market. This is a hangover from a battle two years ago over ownership of the grid assets. These remain in the ESB, although EirGrid is responsible for operating the grid.

But when the two failed to reach transfer and infrastructure agreements, Mr Reeves intervened, imposing a direction on EirGrid and the ESB. Whispers suggest the ESB was not overly happy with the direction but agreed to accept it anyway. Not so EirGrid, which is now heading for a full-blown legal confrontation with Mr Reeves.

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The only people who should regard this situation with any degree of jollity are the lawyers. For it is electricity users - who fund EirGrid and Mr Reeves' office - who will ultimately pay their fees.

Competition was introduced in the electricity market two years ago to foster price reductions. But domestic prices have crept only upwards here and further increases will be sanctioned in September. So Mr Ahern would do well to encourage a settlement soon, as expensive preparatory work on the case is already well advanced.

He might do likewise in the case of a defunct power station at Rhode, Co Offaly, where about 100 staff are clocking in, even though no power is being produced. In the absence of an agreement with workers on closure, keeping the plant open is costing the ESB €60,000 per week. An expensive affair, and not the first of its kind at the ESB.