Press release

ESB reports continued growth while reducing Generation Market Share

13th July 2005: ESB has reported modest growth for 2004 with after tax profits of €267m up 7% on 2003. This performance represents a 6.6% return on group assets. ESB Chairman, Tadhg O'Donoghue said the company is involved in major renewal programmes in both Networks and Generation which will benefit electricity customers across Ireland.

Speaking at the launch of the annual report for 2004, Mr O'Donoghue said that ESB has put in place the necessary infrastructure to facilitate full market opening but as yet no major competitor has entered the domestic market.

Addressing the ESB pension deficit, Mr O'Donoghue assured current pensioners they have no cause for concern. "The assets of ESB's Pension fund are currently valued in excess of €2.8bn. The fund has no immediate liquidity problems and is capable of meeting pensioners entitlements for decades ahead". However given the longer term objectives of the fund the ESB Chairman said he is confident the current negotiations between management and staff representatives would address the long term issue.

The company confirmed that there has been no deterioration in the fund since the actuarial review carried out in 2003.

The Chairman remarked that the continued rise of world fuel prices is putting upward pressure on electricity costs. Fuel accounts for over 55% of all energy generation costs, and 30% of the overall cost of supplying consumers. With 65% of the generation market ESB are not the only generator in Ireland affected by the continued rise in fuel prices. A further drop in the generation market share is expected in 2006 as new generating facilities in Galway and Limerick come onto the grid.

Meanwhile productivity continues to rise. The company reported a record 90,600 new connections to ESB Networks last year and it renewed 16000 kilometres of its medium voltage network. ESB Chief Executive Mr Padraig McManus said it would continue to expand its overall investment by further programmes both in Networks and Generation.

Mr McManus highlighted successful power plant investments in Spain and Northern Ireland as a model for future expansion, "The nature of an Island system which remains largely un-connected means that ESB need to actively pursue other growth opportunities outside the traditional market".

ENDS

For further information see appendix 1 + 2 or contact ESB Press Office
Tel: 01 6765831

Subscribe

RSS feed | What's an RSS feed?

Press contacts

Press Office
t: +353 1 676 5831

Public Affairs Manager

Maol Muire Tynan
t: + 353 1 702 7309
e: maolmuire.tynan@esb.ie

Press Officers

Sinead Bruton
t: + 353 1 702 7570
e: sinead.bruton@esb.ie

Kieran O'Neill
t: + 353 1 702 6193
e: kieran.oneill@esb.ie