ESB has announced that it intends to make a 300 million
contribution to help offset anticipated increases in the cost
of electricity to customers.
At a press conference to launch its 2007 Annual Report, ESB
Chief Executive, Padraig McManus, said that agreement has
been reached with the Commission for Energy Regulation (CER)
that ESB would make a 300 million exceptional contribution
to help offset forthcoming price increases due to rising international
fuel costs (Click
Meanwhile, ESB declared a turnover of 3.5 billion for the
first time in the companys history. It showed after-tax profits
of 432 million for 2007, of which a dividend of 123 million
is to be paid to the Government.
ESB's capital expenditure programme rose to over 900 million
in 2007, with investments concentrated in the Networks system
(600 million) and power generation.
ESB connected 94,400 new customers last year, bringing the
level of connections since 2001 to over 580,000.
Launching the Report, ESB Chairman, Lochlann Quinn, described
the company's performance in 2007 as excellent. "In an industry
facing unprecedented challenges, ESB's healthy financial performance
provides a solid foundation for its recently-announced 22
billion investment strategy aimed at radically reducing carbon
emissions while enhancing security of supply (Click
"The combination of Government support and the professionalism
of management and staff will, I am confident, ensure the company
delivers its ambitious strategic goals" - the Chairman said.
The Chief Executive said the company's strong financial performance
enables ESB to deliver a world-class electricity system serving
2 million customers. Maintaining a strong financial position
is essential to funding growth and the future capital investment.
"Responsibility to our customers is at the heart of ESB's
"A safe, reliable and cost-effective service - while
also reducing carbon emissions - is of paramount importance.
We are facing huge issues in the global energy market - including
climate change, rising fuel costs and growing demand. However,
I am fully confident that ESB has the financial base, expertise
and vision to withstand oncoming pressures and to position
itself as a leading renewables company."
2007 was a year of significant change in the electricity
sector in Ireland with the introduction of the Single Electricity
Market. ESB's generation market share is now 40 percent of
the all-island market.
The company's asset strategy agreement with the CER involving
the divestment of generation assets is due to be completed
by the year end. This involves the sale of two power stations
- at Great Island and Tarbert - two peaking plants and two
sites at Lanesboro and Shannonbridge.
Internationally, ESB extended its portfolio - securing major
contracts in Europe, South Africa, the Middle East and Asia.
At home, ESBI continued to develop a renewables business of
Driving the company's huge capital investment programme while
maintaining a strong and viable business with its customers
at its core, remains ESB's constant focus.
ESB will reduce its carbon emissions by 30 percent by 2010,
by 50% by 2020 and will be net-zero by 2035. As a leading
renewables company, ESB will also continue to make energy
efficiencies a central target.