The energy regulator, Mr Tom Reeves, has moved to ensure there is at least some competition when the electricity sector is fully liberalised in February.

Mr Reeves has asked the ESB to hold a fresh auction of electricity for independent suppliers, but for the first time this power can only be supplied to domestic homes and small and medium enterprises.

It is usually made available for supply to large industrials. This auction process, known as the virtual independent power producer (VIPP) scheme, will be completed before the end of the year, said the Commission for Energy Regulation (CER) yesterday.

The domestic segment of the market is opening up in mid-February, but so far companies have show little willingness to get involved in the sector.

Privately, companies point out that drawing a profit from the domestic market is very challenging. Viridian, the main rival to ESB, has already indicated that it will not be providing a domestic offering by February.

Another possible entrant, Bord Gáis Éireann, is seeking a fresh source of power to enter the market. It currently controls about 17 per cent of the eligible industrial market, but it needs a link up with an existing power generator to service new customers.

Under the VIPP scheme being overseen by Mr Reeves, the ESB will auction about 400 megawatts of power among various independent suppliers.

This power will come from a variety of ESB stations. Successful bidders must hold a supply licence under Section 14 of the Electricity Regulation Act. They must also have an approved credit rating.

Most industry sources do not expect much customer switching in the electricity market in February.