Do ESB unions fear competition?

THE ESB unions have threatened strike action to derail Government policy because of the transfer of transmission assets to Eirgrid.

Everybody’s opinion is welcome. But one can reasonably ask why the ESB unions would go on strike and make the customer suffer because of the transfer of assets from one semi-state company to another.

When companies like Airtricity approach Eirgrid, as it is now constituted, seeking a connection to the transmission grid, they are treated as a competitor. The result is that it can take from five to seven years to get a wind farm connected.

If Eirgrid owned the assets, then Airtricity would be seen as a customer who would increase their asset value, revenue and profits by having a new wind farm connected. There would be no ambiguity, no ‘mother’ to check with, no fear of one’s career being dented.

There is another important reason why Eirgrid should own the assets. If the ESB is left with almost all the power stations, all the distribution and transmission assets, as well as 1.6m customers, it is possible to move the revenue around in a non-transparent manner so that nobody knows where the true profits are being made.

Since the deregulation of the electricity industry, the ESB has been taking most of its profits from its transmission and distribution businesses. There has been very little transparency in their accounts.

No staff redundancies will be created by transferring the assets to Eirgrid, no reduction in wages will occur, so why would the unions go on strike? All staff remain in the unions they are in now.

One is tempted to think the real reason the unions are threatening strike action is because they don’t want competition in the market. We would love to be proven wrong about this — but what other reason could there be for a strike?

Eddie O’Connor

Chief Executive

Airtricity

Airtricity House

Ravenscourt Office Park

Sandyford

Dublin 18