The Minister for Communications, Noel Dempsey, will acquire a 10 per cent shareholding in the ESB on behalf of his department, according to a Bill to be published shortly.
A spokeswoman for the Minister said the provision was aimed at correcting an anomaly where the Minister directly overseeing the ESB currently had no shareholding in the company or voting rights.
The Minister will now have the "same legal entitlement as other capital stock shareholders", says the Energy (Miscellaneous Provisions) Bill 2006. This means the Minister, or his representatives, will now be allowed address the annual general meeting and vote on any resolutions.
Once the Bill becomes law, the Minister for Finance Brian Cowen will have an 85 per cent stake, Mr Dempsey will have a 10 per cent stake, while the Employee Share Ownership Plan (Esop) will have 5 per cent. Dividends paid out by the ESB will go to the Exchequer.
The Bill contains several provisions that will alter the energy market. For example, the functions of the Commission for Energy Regulation (CER) will be expanded to allow the formation of all-island energy market.
The Bill also allows for the first time private-sector companies to own electricity or gas interconnectors. Such infrastructure allows electricity or gas to be transferred between the UK and Ireland. Traditionally, the ESB has owned such facilities, but the Government is keen to bring in the private sector.
The Bill also allows Mr Dempsey to take "emergency measures" by means of an ministerial order in the event of a major energy crisis. The crisis would arise if physical safety or the security of people became an issue.
If the transmission or distribution system for electricity was threatened, this would also represent a crisis, according to the Bill.
The proposed legislation discloses that the cost of an all-island electricity market is likely to be €80 million over three years. The Republic will bear 70 per cent of this cost, with authorities in the North accepting the rest. The ESB has said on several occasions it expects the price of electricity in the Republic to come down once there is a North-South market.
The Bill makes it clear the decisions by the CER should be taken by the members present, but the main commissioner, Tom Reeves should have a casting vote.
The Bill facilitates the full opening of the gas market no later than July 1st, 2007, the deadline set by the EU. The Gas Act of 1976 is to be amended and expands the list of eligible customers to include the term "any person".
The Bill also refers to the CER getting extra staff. This will be funded by an industry levy, although it will require the consent of the Minister.
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