Union demands for an almost 20 per cent stake in the ESB are expected to form part of talks to begin in the new year

Earlier warnings, however, that industrial action could take place in January have receded, with unions prepared to wait for the outcome of talks likely to involve ESB management and the Department of Communications.

Unions had warned last week about power cuts unless a new deal was conceded by the company and ultimately by the Government.

Mr Paddy Reilly, spokesman for the ESB group of unions, said talks would run until the end of February and unions hoped an agreement would emerge.

The ESB staff already own 5 per cent of the company, but Mr Reilly said 14.9 per cent needed to be added to this.

He said staff had left the company in recent years and productivity had been conceded.

Yesterday, delegates from the ESB group of unions decided to enter the talks aimed at replacing the current partnership agreement, known as PACT, which expires in July. Mr Reilly said he expected an agenda for talks to be set prior to the new year, with the first bilateral meetings taking place in early January.

Mr Reilly said he was confident the partnership model used in recent years in the ESB would prove effective.

There unions said they favoured the company remaining in public ownership, but wanted to protect member's interests if the company was sold off at any stage.

Meanwhile, wind power company Airtricity has won a substantial contract in Britain.

In a joint venture with a company Fluor, Airtricity has been awarded a lease to operate a 500 megawatt offshore wind park at Greater Gabbard in Britain.

The award of the lease to Airtricity/Fluor is part of the second round competition for UK offshore wind farm developments by the Crown Estate.

The sites available for offshore wind farm development are located in the three strategic areas: the Thames Estuary, the Greater Wash and the North West (Liverpool Bay).