ESB directors have deferred a decision on changing the ownership of the State company until January. This is despite a request from the Minister for Public Enterprise, Ms O'Rourke, who asked them to reach a conclusion this month.

The company's trade unions argue that other matters - such as a plan to cut its workforce by a quarter - should be finalised before fundamental issues such as its future ownership could be addressed.

It is thought a majority of board members may favour privatisation, but they are reluctant to force the matter while sensitive discussions on a major programme of change at the company are still continuing.

ESB chief executive Mr Ken O'Hara has previously stated that its management team wants to float the company on the stock exchange.

The company faces competitors in the newly-liberalised electricity market for the first time and the management has sought to cut its workforce to 6,000 from 8,000 as it modernises its internal systems. A voluntary severance package has been sent to the Departments of Finance and Public Enterprise for approval.

While three of the company's worker directors are thought to have opposed finalising a decision on ownership, one, Mr Joe La Cumbre, favours a partial flotation. Mr La Cumbre is deputy chairman of the company.

"In advocating such an innovative direction for the company, there is a precondition that ESB staff get an equally innovative reward including an increased employee shareholding," he said in a recent circular to staff.

The chairman of the company's group of unions, Mr Paddy Reilly, said: "There's a policy issue. Why create a private monopoly instead of a public monopoly because that's what we'll be for five years."

Ms O'Rourke has signalled that she will open the entire power market to competition in 2005. At present, only 29 per cent of customers - all in the industrial sector - can buy electricity from independent firms.