THE ESB and Bord Gáis, the two semi-state companies which dominate the Irish energy market, may be forced to change their names next year.
The ESB has had the same name since its foundation in 1927. However, it is already undergoing a rebranding exercise in anticipation that it will have to change its name once its share of the electricity market drops below 60 per cent.
It will still be able to retain the name ESB for ESB Networks, which maintains the grid, and ESB International, its global arm, but the public face of the company for consumers will have to be called something completely different.
The ESB has confirmed that it will have to come up with a “very distinct” name for the company and is the process of utilising brand experts to come up with such a moniker.
It expects to announce the new name early next year for customers as the Commission for Energy Regulation (CER), the industry regulator, anticipates the ESB’s share of the market will dip below 60 per cent by the middle of next year.
The name change is part of the “roadmap to deregulation” published in April.
CER spokesman Andrew Ebrill said the change will be necessary because a customer survey carried out in January showed the public were confused about the difference between ESB Networks, which maintains the grid for all electricity suppliers, and ESB Customer Supply, the company which provides electricity in a competitive market along with companies including Airtricity and Bord Gáis.
“In a deregulated market, it is vital for consumers to have confidence that this is the case so that they can avail of the opportunity to switch supplier and get the best deal for their electricity consumption,” he said.
He also explained that the change was driven by recent European legislation which forbids network operators and supply companies having the same name.
The regulator has also confirmed that the issue of a name change for Bord Gáis is also being considered as part of a roadmap for deregulation in gas later this year, though no decision has been made in that regard yet.
However, Bord Gáis said it is “totally opposed” to such a measure and that it would cost several millions to rebrand the company which would involve everything from uniforms, van livery to the headed paper on the bills it sends consumers. The company said it has spent a huge amount of money on its successful “Make the Big Switch” campaign and another change is unnecessary.
Bord Gáis chief executive John Mullins said it had been informed that the company brand was “too strong” for a deregulated market.
“The reality is that we are an Irish company. You would expect us with all our years of service in the country that we would have a strong brand and we would should not be penalised on that basis,” he said.
“I said to the regulator that I don’t believe that ESB should change its brand name and I don’t believe that Bord Gáis Energy should change its brand name. It only creates confusion.”
