Simon Coveney (Cork South Central, Fine Gael)
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Question 222: To ask the Minister for Communications, Energy and Natural Resources the dividend policy agreed between the ESB, his Department and the Department of Finance; the freedom the ESB has in individual years; the proportions of profits to pay in dividends; if his Department or the Department of Finance can demand particular amounts in individual years; and if he will make a statement on the matter. [13692/08]

Eamon Ryan (Dublin South, Green Party)
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Decisions on annual dividend payments to shareholders are a matter in the first instance for the board of ESB.

The Electricity (Supply) (Amendment) Act 2001, while providing for the establishment of an Employee Share Ownership Plan, also repealed the company's break-even mandate which had existed since 1927. This, in essence, means that the ESB may declare and pay dividends in a manner akin to a commercial public limited company.

However, any decision by the Board regarding declaration of a dividend is made in the context of policy agreed jointly between my Department, the Department of Finance and the company. This agreement saw an increase in Dividends declared from 25% of profits in 2002 to 30% in more recent years.

Preliminary consideration is being given to the review of dividend policy for the ESB. The matter is to be more fully addressed in the broader context of ESB's commitments in light of the Programme for Government and the Government's Energy Policy Framework 2007–2020 and as reflected in the company's new corporate directions in support of sustainable energy and climate change goals.

As ESB is a commercial body operating in an increasingly competitive energy market, the outcome agreed with the shareholding Departments is commercially sensitive and will not be for public release. However, the amounts of dividends paid by ESB to the Exchequer are available in the company's published Annual Reports and Accounts.