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The ESB and Bord Gáis, the two semi-state companies which
dominate the Irish energy market, may be forced to change
their names next year.
The ESB has had the same name since its foundation in 1927.
However, it is already undergoing a rebranding exercise in
anticipation that it will have to change its name once its
share of the electricity market drops below 60 per cent.
It will still be able to retain the name ESB for ESB Networks
- which maintains the grid - and ESB International - its global
arm - but the public face of the company for consumers will
have to be called something completely different.
The ESB has confirmed that it will have to come up with a
“very distinct” name for the company and is the process of
utilising brand experts to come up with such a moniker.
It expects to announce the new name early next year for customers
as the Commission for Energy Regulation (CER), the industry
regulator, anticipates the ESB’s share of the market will
dip below 60 per cent by the middle of next year.
The name change is part of the “roadmap to deregulation”
published in April.
CER spokesman Andrew Ebrill said the change will be necessary
because a customer survey carried out in January showed the
public were confused about the difference between ESB Networks
- which maintains the grid for all electricity suppliers -
and ESB Customer Supply, the company which provides electricity
in a competitive market along with companies including Airtricity
and Bord Gáis.
“In a deregulated market, it is vital for consumers to have
confidence that this is the case so that they can avail of
the opportunity to switch supplier and get the best deal for
their electricity consumption,” he said.
He also explained that the change was driven by recent European
legislation which forbids network operators and supply companies
having the same name.
The regulator has also confirmed that the issue of a name
change for Bord Gáis is also being considered as part of a
roadmap for deregulation in gas later this year, though no
decision has been made in that regard yet.
However, Bord Gáis said it is “totally opposed” to such a
measure and that it would cost several millions to rebrand
the company which would involve everything from uniforms,
van livery to the headed paper on the bills it sends consumers.
The company said it has spent a huge amount of money on its
successful 'Make the Big Switch' campaign and another
change is unnecessary.
Bord Gáis chief executive John Mullins said it had been informed
that the company brand was “too strong” for a deregulated
market.
“The reality is that we are an Irish company. You would expect
us, with all our years of service in the country, that we
would have a strong brand and we would should not be penalised
on that basis,” he said.
“I said to the regulator that I don’t believe that ESB should
change its brand name and I don’t believe that Bord Gáis Energy
should change its brand name. It only creates confusion.”
Source - The Irish Times
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