ESB trustee group vows to block break-up plans

A TRUSTEE group with a 5% share in the ESB has become the latest to threaten action if the Government continues with its “ill-considered strategy” to break up the company’s functions.

In its white paper published on March 12, the Government spelt out plans to move the transmission assets of the ESB to Eirgrid.

Earlier this week, unions representing workers at the electrical company said they were prepared to do “whatever it takes” to prevent the Government breaking up the ESB.

The ESB ESOP Trustee, which has a membership of 10,000 ESB employees, said the plans would impose a major disincentive on investment in the network and strip the ESB of more of its property assets.

“Each of these moves would have an enormously detrimental impact on its participants,” it said.

“The ESB ESOP Trustee holds 5% of the capital stock of ESB, purchased in 2001 at market value, on behalf of over 10,000 current and former ESB employees.

“As a result, the assets of the ESB are no longer ‘State assets’ and their value cannot be destroyed to suit an ill-considered strategy of Government.”

The board of the trustee met on Thursday after which it said: “The ESOP Trustee wishes to make it clear that it is determined to protect the interests of its members and will oppose any Government attempt to commandeer its assets.

“The board, at its meeting, was both unanimous and resolute that it will take whatever steps are necessary and appropriate to protect the interests of the participants in the ESOP.

“No coherent explanation has been given as to how moving the transmission assets of ESB to Eirgrid will save any costs,” the trustee spokesman said.

“This transfer will result in a duplication of management and other overheads and ignores the fact that Eirgrid already manages the transmission assets quite independently of ESB.

“Breaking up ESB without having a proven reason to do so will destroy an enormous sum in shareholder value for the State and for ESOP members without delivering any guaranteed advantage to the consumer.

“Breaking up ESB will destroy the most valuable, efficient and effective semi-State company at a huge cost to the State.”

Last night, a spokesman for the department said the bulk of the ESB would remain intact and it was wrong to suggest the company was being broken up.

“After the transfer of assets, the ESB group remains a strong commercial and integrated entity, delivering on its mandate for the distribution network as well as power generation and supply and ESB international. Any suggestion that the ESB is fragmented is not based on facts.

“The transmission system has assets of €840 million with a staff of 25 who exclusively manage the ownership of it.

“This is what is being transferred to Eirgrid who already run it.

“By contrast, the ESB group will remain the owner and operator of the distribution network which has assets of 4 billion and employs 3,500 staff.

“Far from weakening the ESB in any way, both ESB and Eirgrid will be stronger and more strategic as a result of these decisions.”

He said the Government would be prepared to work with the unions and the shareholding groups to resolve issues.

“The Government has made it clear that it will work with ESB management and unions as well as the ESOT, as minority shareholder in ESB, to ensure a satisfactory outcome which addresses all legitimate concerns as part of the process of implementing these decisions,” the spokesman said.