ESB to make decision on Moneypoint future

THE ESB says a decision on whether to refurbish or abandon its Moneypoint power station will be made by the end of next month.

The State-owned company said it must make a decision by then as the EU has demanded that harmful environmental emissions at the coal-burning station be cut.

This means the ESB has decide on whether to refurbish the station at a cost of €250 million or abandon the 900 megawatt plant altogether.

“There was a very powerful business case and that has been weakened by the increase in coal prices. I believe the business case is still strong, but it a very complex issue and we are still looking at it. It is not just the price of coal today, but what will happen in the next five to 10 years and I believe there is still a positive case for refurbishment,” the ESB chairman Tadhg O’Donoghue said yesterday.

The upgrade will also be dependent on whether agreement can be reached with workers about staffing levels and work practices.

The semi-State company yesterday announced a 62% rise in after-tax profits to just under €249 million for 2003. The ESB saw a 9% rise in turnover to €2.34 billion and upped the dividend it pays to the Exchequer by 40% to €67m.

Chief executive Padraig McManus said last year was a good year for the company and it had invested a significant amount in building up its network with a €1.2 billion capital expenditure programme during 2003. The company connected 77,000 new customers to the grid and said it expects to add more this year.

It also shed 200 workers during the year and plans to reduce its workforce by a further 500 this year.

Mc McManus said it was likely the ESB would return to the money markets this year for funding having raised €1 billion in 2003.

“If you look at the capital expenditure and the requirement in our network, the requirement for funds are high. When we went to the US market there was a strong and positive response. It is a source of funding we expect to tap again and I believe we would be welcomed back,” he said.

On the issue of privatisation the chairman said: “We looked at this issue four years ago and concluded at the time that we were not ready. However, you must also bear in mind that the minister and government have said that they do not envisage the network going out of State control.”