ESB organises upgrade funding

Ian Guider

The ESB yesterday said the money will be required as part of its five-year 3bn investment plan to upgrade the network and replace old power stations.

In the past year the ESB has invested 700 million in the electricity grid, and some 1.9bn since 2002.

Additionally, E190m has been spent on two new peat plants in the midlands and the ESB also invested E120m on a new information technology system in advance of the Irish electricity market opening to full competition in February.

ESB’s finance director Bernard Byrne said the borrowing was necessary as the company could not fund the investment from internal resources.

“We don’t generate that level of cash in the business, notwithstanding the great excitement about the level of profits we make,” he said.

“It is not remotely sufficient to cover these sort of investment programmes.”

He said it was vital to upgrade the network as the company was still signing up new customers.

The ESB said that 90,000 customers were added to the grid in 2004, a figure Mr Byrne said was remarkable given the size of the country.