ISME criticises decision not to break up ESB

Independent Business Organisation ISME has criticised the Government’s decision not to break up the ESB as outlined in the Green Paper on Energy.

The decision was described as a retrograde step that will prevent competition from entering the marketplace and lead to further increases in electricity prices.

“It is extremely disappointing that the Government commission a report by Deloitte into the ESB and then decide to reject the main recommendations,” said ISME chief executive Mark Fielding.

“This is absolutely ludicrous and shows a complete lack of understanding or acceptance of the impact of rising energy costs, particularly on the small business community.

“How can a Government that outwardly proclaims to encourage competition on the one hand, dismiss recommendations to increase competition on the other and in the process bolster the ESB's dominant position?”

The organisation went on to criticise what it regards as the Government’s failure to address the influence of ESB unions.

“This is unacceptable,” said Fielding.

“Once again the Government has abdicated their responsibilities to the public and the business community by protecting an institution that through high labour costs and other inefficiencies is adding €100m to costs compared with similar operations abroad and forcing the consumer to pick up the tab.”

“Instead of encouraging competition, this decision stymies competition and enshrines the ESB’s dominance for many years to come, the result being further hikes in electricity costs, based on recent experience.”