A power station at Rhode, Co Offaly, is likely to be shut down this year after the ESB board ordered discussions yesterday on a "closure programme". The peat-powered plant, which was scheduled to close at the end of 2003, has not produced electricity since a worker was seriously injured in an accident last May. It is thought an investment of up to ¤4 million was required to make it safe.
Because a reconstruction project could take a year to complete, it is thought that the ESB believed it would not be able to return any profit from the plant before its scheduled closure. Despite ordering talks on a closure programme, the company did not give a firm indication about the plant's fate.
This led to "surprise" in certain political quarters, suggesting that political clearance for closure had been received. Other observers believe the issue may become sensitive when the General Election is called. About 100 people remain "employed" at Rhode even though the plant is not producing any revenues. In addition, about 130 people are believed to be employed by the Bord na Móna operations that supplied Rhode.
The expected closure was criticised by Fine Gael's enterprise spokesman, Mr Charles Flanagan TD, and by a local Fianna Fáil councillor, Mr Gerard Killally.
Discussions on the closure programme are likely to take place in the context of a wider restructuring programme, which will see 2,000 of the ESB's 8,000 staff take voluntary severance or early retirement packages. It is thought that the ESB was keen to avoid a repeat of the situation at Rhode's sister plant in Ferbane, which remained open but did not produce any electricity for two years prior to its closure last month. Bord na Móna is unhappy with the decision. Its managing director Mr John Hourican said: "Bord na Móna had invested in peat production capacity in anticipation of the station taking its full complement of peat to the end of 2004. The decision, if confirmed, will impact seriously on jobs in Bord na Móna and profits, which are required for re-investment in peat for electricity."
In a related development, ESB directors approved expenditure of €3.1 million on new peat-fired plants at Shannonbridge, Co Offaly, and Lanesboro, Co Longford. These plants, which will be supported EU-sanctioned "public service obligation" tariffs, are being developed to replace six peat-fired plants, including those at Rhode and Ferbane. In 2000, ESB unions agreed to these closures in return for EU support for the two new plants.
