The managing director of ESB National Grid, Mr Kieran O'Brien, is to take early retirement. He will leave the company at the end of the year.
Mr O'Brien's sudden resignation yesterday follows protracted and ultimately unsuccessful negotiations over a contract he was offered to become chief executive of EirGrid, the new body which will take over transmission of the national power grid.
It is understood that the contract featured a package of €150,000-plus. Sources said that he felt he would have been in a worse position had he accepted the deal.
One source said there had been "a lot of to-ing and fro-ing" about Mr O'Brien's contract in the past couple of weeks. Another source said he had not been happy with various aspects of the contract, including pay and pension conditions and, although they might have been resolved through litigation, in the end he had decided to take early retirement.
It is understood that the contract, although approved by the Department of Finance, had been offered to Mr O'Brien by the Department of Communications, Marine and Natural Resources. A department spokesman declined to comment last night, saying the issue was a matter for Mr O'Brien.
In a statement last night, Mr O'Brien said his years as managing director of ESB National Grid had been the highlight of his career.
"A key factor in my decision was my personal awareness of the frustrating delays in establishing EirGrid as the Transmission System Operator \, and my wish to do everything possible to facilitate that objective."
He said he believed his decision was a timely and responsible one. "The establishment of EirGrid as the TSO is absolutely vital and I have always wished to assist this. He said he was very grateful to the EirGrid board "for their major effort to resolve all issues."
An EirGrid statement yesterday said it regretted that Mr O'Brien would not be taking over as chief executive.
Mr O'Brien (56) had been head of the transmissions system operator for the last 11 years.
However, in 2001, it was decided to establish it as a standalone body, independent of the ESB.
The relationship between the ESB and ESB National Grid has been somewhat controversial, partly due to the delay in setting it up as a separate entity.
Earlier this year, Mr O'Brien suggested that his business unit move to alternative premises, away from the ESB's head office in Fitzwilliam Street.
However, he said the ESB itself would have to lead the negotiations on the deal.
The National Grid has sharply criticised the ESB and its dominance of the electricity market. It recently said that this had deterred international investors from entering the market and had skewed the pricing system in the sector.
