Electricity break-up- Dempsey must justify ESB proposal

The question of who exactly is going to benefit from the break-up of the Electricity Supply Board (ESB) has not been answered to anyone’s satisfaction.

It needs to be answered clearly in the light of what happened following the privatisation of Telecom Éireann.

Some people made millions on the deal, while ordinary investors — who were encouraged to support privatisation in a spirit of patriotism — were ripped off in a shoddy and shameless manner.

Energy Minister Noel Dempsey argues that the transfer of the transmission grid from the ESB to EirGrid, a new State body, will provide for increased competition, offer greater choice to consumers, and reduce the cost of electricity. But his office has provided little information in response to hard questions about the supposed financial benefits.

The price of electricity has risen by 40.6% in just four years. The minister was not responsible for the rise, but he did authorise it, which hardly inspires confidence in his judgment, especially when it was well over the rate of inflation.

Where there was competition between Viridian and Eirtricity during the past four years, there was no meaningful reduction in costs.

Challenged to specify the financial benefits that would accrue from the Government’s proposals, the minister’s office replied that it is “very hard to quantify the exact savings”.

It will be even harder to believe that Mr Dempsey’s proposals are in the public interest, unless the benefits are clearly identified and quantified.