ESB to close 27 shops in 15 counties

THE ESB is set to raise millions of euro from the sale of one third of its retail outlets. The company has decided to close 27 outlets in 15 counties as part of a major rationalisation of its retail operations.

The closures will affect 60 permanent staff who are being offered the choice of re-deployment or a voluntary severance package. Around 30 part-time staff, however, will lose their jobs, although they will receive a special redundancy payment.

Many of the 27 outlets, which are mostly located in prime locations in larger rural towns, are expected to be put up for sale after they close their doors at the end of August.

Although the ESB has made no formal decision on which sites it will sell, the value of its commercial property portfolio would be the envy of many other semi-state companies.

In a statement issued yesterday, the ESB said it was closing outlets identified as non-viable under the Programme to Achieve Competitiveness and Transformation deal agreed between management and unions. The PACT agreement resulted in over 600 people leaving the company last year.

The company said it had developed a number of other bill payment options over the past two years which now allowed customers pay their bills in over 1,800 outlets including 1,600 An Post offices as well as by phone or the internet. Over 50% of all ESB bills are made at non-ESB locations.

Cork will be worst affected by the decision with six of the county’s 11 ESB shops earmarked for closure, while three outlets each in Donegal and Galway will also shut.

The ESB Officers’ Association, which represents employees at ESB retail outlets, said the company had originally proposed the closure of up to 40 shops. “This was rejected by the ESBOA and, following extended and difficult negotiations, a final position was arrived at which identified 27 locations to close at the end of August 2003,” said ESBOA general secretary Tony Dunne. “A comprehensive package of proposals was negotiated for those affected, including voluntary severance, relocation, protection of loss of earnings and an exit package for temporary staff.”

The decision to close one-third of the ESB outlets was widely criticised last night by Opposition parties and representatives of consumer groups.