Workers opposed to plans to split the ESB believe the EU will abandon the policy next year in a bid to protect Europe's energy industry from Russian takeover.

The Government intends splitting the ESB and the national grid, the transmission system that carries electricity from generators to the distribution network.

The move is in line with recommendations from the EU that are designed to boost competition. But a group that represents staff who own 5 per cent of the company said yesterday that Brussels looks set to drop the policy.

David Beattie, chairman of the ESB's employee share option plan (Esop), said that small and large EU member states were coming together in an attempt to change Brussels' policy.

He added that France and Slovenia, which both oppose the policy at EU and national level, will take over the European presidency next year.

European governments and big power companies fear that break-up will leave them open to takeover by the likes of Russian giant, Gazprom.

"It is extremely unlikely that even a watered-down version of the discredited policy will emerge at European level during next year," he said yesterday.

"Any action by the Irish Government to break up the ESB in pursuit of an abandoned EU policy would be reckless and deeply damaging."

He added that it would leave the State company in a position where it would be unable to compete.

The ESB unions have already threatened to strike in an attempt to halt the plan and its management has also expressed concerns at the proposal's impact on the company's future viability.

An independent agency, Eirgrid, manages the grid, but the ESB owns it.