The EU Electricity Directive 96/92/EC concerning common rules for the internal market in electricity requires that approximately 28 per cent of the Irish electricity market be opened to competition initially. This will allow independent electricity suppliers to contract directly with eligible customers for the supply of electricity. Eligible customers are those who will be free to choose their electricity supplier in the competitive market. The remainder of customers will continue to be supplied by ESB.
The directive is being implemented in two phases. The Electricity Regulation Bill, which provides for the establishment of the Commission for Electricity Regulation, completed Second Stage in the Dáil on 24 March 1999. A second item of legislation to be published later this year will implement the balance of the directive.