Talks on the closure of a defunct power station in Co Offaly were postponed yesterday for the second time in less than a week. A proposed meeting between the ESB and workers last Friday was also postponed.

The ESB is spending €60,000 per week on wages at the plant at Rhode, which has not produced any electricity since May last year. With certain workers demanding compensation for exposure to asbestos at the plant, the two sides are believed to be far apart.

An ESB spokesman said: "The discussions between the ESB and staff representatives in relation to the closure arrangements at Rhode power station are continuing and are at a very delicate stage. A number of issues have been raised but require detailed consideration."

The affair is seen as a significant headache for the company, which is fighting demands by the Government to pay up to half its post-tax profit as a dividend. The ESB board agreed yesterday to pay an interim dividend of €20 million.