Dáil Éireann Debate, Tuesday - 8 February 2005
275 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources if the board of the ESB has expressed an opinion in regard to the future role of the company; and if he will make a statement on the matter. [3760/05]
View answer318 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the extent to which discussions are ongoing with or within the ESB in regard to the future of the company and issues have arisen which could have a fundamental effect on the company’s future; and if he will make a statement on the matter. [4056/05]
View answerI propose to take Questions Nos. 275 and 318 together.
Five-year rolling corporate plans show the medium-term thinking of State-owned companies. I am aware of views expressed on how the company sees itself being positioned going forward, including its stated desire to retain its vertically integrated structure. I have been informed by the chairman that the question of privatisation is not on the company's agenda. Furthermore, within the context of full electricity market opening later this month, ESB has declared its intention to reduce its market share to 60%. This is a significant target and one which is critical in the context of dealing with ESB's dominance and the development of a competitive electricity market. The company also views it as important for it to maintain sufficient scale to compete with other large energy companies, to match peer performance, expand internationally and ultimately secure sufficient economies of scale and scope to remain a major Irish company in the longer term.
The company will have an opportunity to put forward its views on its future during the consultation phase of the review of the electricity sector which I am proposing to instigate shortly. I confirm it is my intention that the review should examine all options in regard to the future shape of the ESB and, in particular, on how to deal with the company's dominance in the power generation market. I also intend to require the relevant consultants to identify a range of alternative institutional arrangements and company structures, including ownership models, for the ESB and, to the extent appropriate, for the electricity sector in general. The consultants' recommendations will serve to inform future policy decisions in regard to the future of the electricity sector. Given the scale of the review, it is likely to be the end of the year before the final report is available.
