ESB reacts angrily to Viridian's claim of monopoly abuse

A quarrel has broken out between the Northern Ireland power company looking to enter the Republic's electricity market, Viridian…

A quarrel has broken out between the Northern Ireland power company looking to enter the Republic's electricity market, Viridian, and the ESB.

While the firms have been circling each other in recent months, yesterday Viridian held a press briefing accusing the ESB of "abusing its dominant position" and protecting its status as a "monopoly".

The ESB reacted angrily, saying Viridian, operating as Northern Ireland Electricity, was in a monopoly position there, where it controlled 98 per cent of the market.

Viridian said its prices to customers in the Republic would be 1015 per cent cheaper than the ESB's. But the ESB said Viridian customers in Northern Ireland were at a "major disadvantage" and paid 24 per cent more than ESB customers here.

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The clashes came before a crucial meeting today when the Electricity Regulation Bill, which aims to liberalise the sector, is debated and possibly amended by members of the Committee on Public Enterprise and Transport.

Viridian claims the Bill unfairly favours the ESB and wants certain amendments. The ESB wants the Bill passed as currently drafted and hopes the Government will not accept opposition amendments likely to be tabled by among others, Fine Gael public enterprise spokesman Mr Ivan Yates.

Viridian claims the Bill allows the ESB to have its plants automatically authorised, while competitors "may or may not be authorised".

The ESB counters that it must have its plants authorised as no other supplier will be able to supply power for several years. An ESB spokesman said Viridian's press briefing "could be seen as an attempt to influence the deliberations of the Oireachtas as it considers the Bill".

Viridian, along with CRH, has received planning permission for a 600 megawatt gas-powered plant at Huntstown, Co Dublin, from Fingal County Council. It hopes the plant will operate by the end of 2001, although this may be delayed by planning opposition.

The ESB plans its own gas station at Ringsend, Dublin, which it hopes to bring into commission sometime in 2001.

Viridian said the ESB was "trying to slow down our project by withholding necessary information". An ESB spokesman rejected this, saying it was "not unusual as markets open up for new entrants to try and discredit the incumbent industry".

"Repeated attempts have been made by us and by others interested in entering the Irish market to get information out of the ESB but to no avail. The ESB won't even provide the names of the 300 or so eligible customers that are being opened up to competition," said Mr Michael McKernan, head of public affairs at Viridian Power Resources, the Viridian subsidiary involved in the Huntstown project.

He said the ESB had refused to give details of the charges it would levy for use of its distribution and transmission network when the market opens up next year.

He said Viridian needed these to offer a comprehensive quote to large corporate customers who can choose between electricity suppliers from next February. Mr McKernan said the company had met the Minister for Public Enterprise, Ms O'Rourke, and she had been "sympathetic".

The ESB spokesman said the charges for use of its distribution and transmission network were a matter for the incoming electricity regulator, Mr Tom Reeves, who had to approve them.

Viridian said the ESB refused to supply it with the names of the top 320 corporate customers in the Republic. But the ESB spokesman said it would supply these names to the regulator and claimed Viridian refused to give ESB the names of the top 320 corporate customers in Northern Ireland on a separate occasion.