THE ESB is prepared to meet the challenges of competition, but it will not diversify its business, its chief executive, Mr Joe Moran, said yesterday. Mr Moran said the company would concentrate on growing its electricity business in Ireland and abroad.

He said Ireland fadced the challenge of combining commercial competition and public policy requirements when introducing new structures in electricity industry.

Speaking at an Irish Congress of Trade Unions conference in Dublin, Mr Moran said the ESB must have the freedom to compete in ally sectors of the electricity market. "Secondly, we must have the freedom to compete on equal terms with the new players who enter the market," he added.

Addressing the same conference, Ms Rosemary Steen of IBEC said that it was vital to recognise the key importance for industry of a coherent national energy policy". This must ensure a competitive market in electricity and gas, she said.