Union pleads ESB case to EU commissioner

DELEGATION from the union MSF which met the EU Energy Commissioner Mr Christos

DELEGATION from the union MSF which met the EU Energy Commissioner Mr Christos

Papoutsis yesterday, last night expressed confidence that Ireland would be able to win modifications in the EU's electricity industry liberalisation plans.

Mr Joe Bowers and Mr Pierce Martin, who represent workers in the ESB, were joined by the Dublin MEP, Ms Bernie Malone at the meeting which they said was very positive. The Greek Commissioner appeared to have a particular understanding of Ireland's problems because of his knowledge of the similar Greek system Mr Martin said.

The delegation urged the Minister for Transport, Energy and Communications, Mr Lowly to redouble efforts to present the Irish case and said that a technical delegation from the union would be returning to Brussels to meet officials.

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The Commission, in its draft directive, is proposing to make third party access to electricity distribution networks mandatory as well as requiring the right to competition between generators.

The union contended that third party access to the network would be particularly damaging in a small isolated market like Ireland with extensive and expensive rural networks to maintain. There would be a danger that generators would come in to the market and "cherry pick" lucrative bulk contracts, leaving a less viable and more expensive market to the existing provider.

Not only would such a scenario push up electricity prices in rural areas, Mr Martin contended, but it would jeopardise future investment.

Irish concerns are shared by Luxembourg, Greece and Belgium.

The union supports the Government's call for the directive to allow countries to opt for a "single buyer" model in distribution while allowing competition between generators.

The ESB has already begun the process of unbundling the accounts of both generation and distribution so that generation competition is transparent.

The directive will be discussed again by officials at the end of the month and then at an informal meeting of energy ministers in February. A final agreement on the measure is unlikely before the end of the year after which a transition period of a couple of years is likely.

Patrick Smyth

Patrick Smyth

Patrick Smyth is former Europe editor of The Irish Times