Bernard Durkan (Kildare North, Fine Gael)
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Question 98: To ask the Minister for Communications, Energy and Natural Resources the up to date position in regard to the future structure and operation of the ESB: the extent to which discussions have taken place with the various interests involved; and if he will make a statement on the matter. [35561/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 415: To ask the Minister for Communications, Energy and Natural Resources the extent to which he has had discussions with the ESB, management and unions in the context of the future structures of the company; and if he will make a statement on the matter. [35959/07]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 98 and 415 together.

Government policy is clear on the retention of the ESB Group as a strong, commercially viable and integrated State-owned entity.

The Programme for Government, together with the White Paper on Delivering a Sustainable Energy Future for Ireland, explicitly confirms the Government's position that the electricity network, as a strategic national asset, will remain in State ownership and will never be privatised. The transfer of ownership of the transmission assets from ESB to EirGrid will take place by end 2008, in that context.

In line with successive Partnership Agreements, there will be a full process of engagement with the management and unions of both ESB and EirGrid on implementation of the transfer of the asset ownership function. The process will also include engagement on legitimate concerns of the ESB's Employee Share Ownership Trust (ESOT).

On 29 November 2006, the Commission for Energy Regulation (CER) and ESB agreed a strategy, which includes an agreement for ESB to divest 1,300 MW of its existing capacity, to ensure the progressive reduction in ESB's market share in power generation to around 40% in an all-island market context by 2010. It is in this context that ESB Power Generation will continue to compete in the island of Ireland and, eventually, as the regional energy markets progress, the wider single energy market in the EU.

While ESB continues to develop its renewable energy portfolio on the island, approval has been given to the company to build a new power plant at Aghada, County Cork. Authorisation for the construction of Aghada is intrinsically linked to ESB's delivery on the CER-ESB Asset Strategy to the full satisfaction of the CER.

I expect that the ESB Group will play a leading role in supporting the development of renewable energy and demand side and management strategies. ESB International will be strongly growing its UK, European and international business. ESB Group will continue to compete successfully with Viridian, Airtricity and all other independents in power-generation and electricity supply in the all-island electricity market.

I met the ESB Group of Unions on 23rd July in relation to the energy policy objectives set out in the Programme for Government and the Energy Policy White Paper, which impact on ESB.

I have made it clear to the Group of Unions that I am willing to discuss constructively any legitimate issues of concern that they may have. I look forward to a positive process of engagement and to further meetings as appropriate with the Group of Unions.

I intend meeting the ESB's Employee Share Ownership Trust (ESOT) early in 2008 on a range of issues, including the transfer of the transmission assets. As was the case in my meeting with the Group of Unions, I will be listening to any concerns that they might have on the issues and providing a clear outline of my own position and that of the Government.

I have no doubt that the ESB has a vibrant future ahead. Given its prominence and central role in the Irish energy sector, ESB has a crucial contribution to make in the challenges ahead.