The electricity regulator has threatened legal action against the national grid operator, EirGrid, over its refusal to comply with a direction enforcing its separation from the ESB.
Mr Tom Reeves is also understood to have accused EirGrid's chairman, Prof Eddie O'Kelly, of being "disingenuous" in claiming that the views of its board had been "generally ignored" in the separation process. His letter to EirGrid last Thursday is seen as a sign of increasing frustration with the grid company's board.
A statutory instrument passed last year said an infrastructure agreement formalising EirGrid's separation from the ESB should have been completed before June.
Mr Reeves intervened when that deadline was passed in what were described as tough ESB-EirGrid negotiations.
In his letter, the regulator is understood to have said he was aware that EirGrid's board was meeting today. If its directors did not indicate by the close of business that it would comply with the direction, he said he would seek a High Court order enforcing it.
Such an action would be Mr Reeves' first against EirGrid, which objects to the direction because it gives control over the "detailed planning" of the power network to the ESB.
The grid operator and the ESB are being separated as part of the liberalisation process in the electricity industry. ESB owns the grid but EirGrid controls the flow of electricity into the system to ensure fair competition to independent electricity companies.
Under the terms of Mr Reeves' direction, EirGrid has responsibility for long-term planning of the grid. Its directors have argued they cannot fulfil their statutory remit without control over planning.
Mr Reeves' office is understood to argue such a structure would not incentivise the ESB to reduce the cost of a £500 million (€635 million) investment programme needed to upgrade the system by 2005.
It is understood that the Minister for Public Enterprise, Ms O'Rourke, has written to EirGrid, supporting Mr Reeves' direction.
EirGrid's spokesman confirmed that its board would meet today. It is thought board members may consider resigning if they decide against implementing the direction.
