Dear Pat,
I am writing to you about the ownership of the electricity grid and the sale of ESB. In particular I am urging decoupling of the grid from the ESB prior to any sale of the state utility.
Firstly, the creation of a competitive electricity market in Ireland is incomplete. ESB remains a dominant player, and its ownership of the grid allows it to influence investment decisions that effect the whole market. Our principle aim must be to create a competitive industry where other smaller companies get a fair crack of the whip. A large dominant player is neither economically sensible nor fair to the smaller competitors. Consumers, including employers, suffer from the resultant high electricity prices.
Secondly, I am extremely concerned that we will not gain the full value of the transmission grid in any sale if it is bundled with the ESB. Because the grid is operated by Eirgrid, it is therefore not an attractive investment for private investors. No sensible investor wants to pay full price for an asset they will not be allowed to operate. By selling the grid with ESB, I believe we are doomed to accept a price that is substantially below the true value of the grid. It can only be sold for full price if Eirgrid is sold along with the grid (although I definitely do no advocate this).
Therefore, both to improve competition and to safeguard the value of State assets, I urge you to decouple the grid from the ESB prior to any sale of the ESB.
No comments:
Post a Comment