ESB and unions to discuss company's future and sale of two power plants

ESB MANAGEMENT and unions will hold talks next week on the State electricity company's future and its plans to sell two power…

ESB MANAGEMENT and unions will hold talks next week on the State electricity company's future and its plans to sell two power plants this year.

The ESB is in the process of selling two plants at Tarbert in Kerry and Great Island in Wexford. It expects to receive final bids in May from the interested parties, which include fellow State company Bord Gáis and competitor Viridian.

The plants employ a total of 210 workers, and their sale is expected to be on the table when ESB management meets representatives of the company's union late next week.

Union sources said yesterday that the meeting would cover the sale of the two sites, as well as plans for the State company.

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Up to recently unions, which include the Amalgamated Transport and General Workers' Union (ATGWU) and the Technical, Engineering and Electrical Union (TEEU), were not willing to discuss the closure and sale of ESB plants as they were opposed to Government plans to split the company's generating and distribution businesses.

Last December more than 90 per cent of union members voted in favour of striking in a bid to stop the break-up. However, last week Minister for Energy Eamon Ryan announced that the Government plans to commission an independent study of the break-up plan, although it is still policy.

In his statement last week the Minister said he would ask the ESB to "engage with" the unions on the closure and sale of the plants.

As part of a deal with the Commission for Energy Regulation (CER), the ESB has to close four plants by 2010. In return, it is being allowed to build a €400 million plant at Aghada in Cork Harbour.

The Government banned the ESB from building new power plants at the beginning of the decade to encourage competition in the Republic's electricity supply industry.

The CER gave the go-ahead to the Aghada plant to ensure that the State has enough power stations to meet future demand.

One union source said last night that they would "evaluate" the plans to sell Tarbert and Great Island, but would not now deal with any further proposed plant closures.

In his statement last week, Mr Ryan also said he would introduce legislation to speed up the development of an electricity cable between Ireland and Britain.

Eirgrid, the agency that manages the national grid, is in charge of the project and will own the link.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas