Peak electricity demand has fallen for the first time in 15 years thanks to an agreement by large electricity users to cut their consumption, ESB National Grid has announced.

Several heavy engineering, manufacturing and cold storage companies reduced their consumption during winter 2003/ 2004 and this was sufficient to reduce overall peak demand.

Under a deal introduced last year by ESB National Grid, financial incentives were offered to large users of electricity to cut their usage at certain times during the day.

This reduced peak demand by 1.5 per cent.

While this was small, ESB National Grid confirmed that winter 2003/2004 was the first period since 1989 in which peak demand for electricity had reduced.

The agreement, known as the winter demand reduction scheme, provided financial incentives to 181 large businesses. The participating companies reduced their usage of power between 5.00 p.m. and 7.00 p.m. on business days from November to February.

The scheme was introduced last year by ESB National Grid with the backing of the Commission for Energy Regulation.

A spokesman for ESB National Grid said the scheme played a valuable role in helping to maintain the margin between supply and demand on the Irish power system.

"ESB National Grid is currently completing a full analysis of the scheme and believes that further reductions in electricity usage during peak demand hours are possible.

"To this end, it is planned to invite comments and consultation on the scheme from interested parties in the near future," he added.

The peak in system demand on the Irish power system this winter was 4,329 megawatts,recorded on January 27th.

The peak the previous year was higher at 4,400 megawatts.