The ESB has turned in an impressive set of results but it is clearly worried about the threat competition will pose. By February 2000, around 28 per cent of its market will be open to rivals.

ESB chief executive, Mr Ken O'Hara, expects companies such as Northern Ireland Electricity (NIE) and some of the utilities based in Britain, mainland Europe and even the US to show an interest in the Irish market. An added attraction is the phenomenal rate of growth of this market, 6.5 per cent a year at current levels.

The Government has published a discussion document on opening the market, and the ESB and many others will make their own observations by the end of June. Yesterday, ESB chairman, Mr Billy McCann pointed out that nobody knew what shape the competition would take. Electricity and its supply are complex topics. For example, companies may be able to enter the market as buyers of electricity from the ESB and then sell it on to large users. Alternatively, they may enter as generators of electricity as in the case of IVO, the Norwegian company which will operate the Europeat station.

Inevitably, the ESB has voiced concerns that it, and the consumer, should not be penalised when competition comes in; that electricity does not end up costing customers more; and that the ESB is not made to carry the burden of its previous investments. In other words, the situation should reflect the ESB's contribution to the industry.

Given the level of investment, which the ESB says is the equivalent of £1,000 per customer, that the state monopoly will have to invest over the next five years - a 3 per cent price rise does not seem unreasonable. However, it is only when there is competition that electricity users will be able to judge for themselves whether they are getting value for money.