Plans for an urgently needed new power station could be stalled by the fallout from the row over Government plans to split the ESB. Barry O'Halloranreports.
The ESB last month got the green light to build a 430 mega watt (mw) power plant at Aghada in Cork Harbour, which will have to be running by the end of 2009 to prevent possible power cuts.
Under the terms of an agreement with the Commission for Energy Regulation (CER) and Minister for Natural Resources, Noel Dempsey, the State company must sell power station sites with the capacity to produce 1,300 mw - enough energy for about 500,000 homes - by 2010.
As this could mean the closure and sale of large plants such as Tarbert in Co Kerry, the company will have to get the support of the trade unions that represent its 6,000 workers.
However, management talks with the unions over this issue adjourned following the publication of the Government's White Paper on energy, which proposes passing ownership of the ESB's transmission grid to another State body, Eirgrid.
The unions are opposed to the move, and leading figures yesterday signalled that they are not going to continue talks on the disposal of power stations unless the proposal to split the ESB is changed.
Tom Crean of the revived ESB group of unions told The Irish Times yesterday that the talks on the closure and disposal of assets by the 2010 deadline had been adjourned indefinitely.
"They have not persuaded us of the need for any of this," he said.
Brendan Ogle, regional organiser of the Amalgamated Transport and General Workers' Union, warned that if the Aghada plant was not completed on time, "the lights would go out".
"Where are the competitors who are prepared to build that power station at Aghada? They're not there, the only people who are willing to build it are the ESB."
The State company has hit a further difficulty in that the estimated cost of the plant has jumped by €50 million to €400 million in the two years since it was originally proposed.
It is seeking Mr Dempsey's approval for the extra expenditure, which it needs this week, as it has to sign construction contracts by the weekend.
However, the Minister is only likely to give approval if the company can guarantee that it will honour its agreement to dispose of the 1,300 mw by the 2010 deadline. It was originally supposed to sign a contract with the CER last week. That has been delayed but the ESB expects it be in a position to sign the contract shortly. A spokesman for the ESB said the State company intended to deliver on its commitment to build Aghada, and said it would complete the process needed to get the support of both the Minister and the CER.
