ESB revamp makes power generation a stand-alone unit

The board of the ESB has approved a significant re-organisation of the company aimed at making its structures more reflective of the modern electricity market.

The company's power generation arm, which includes 19 power stations, will now become a stand-alone unit. It was previously combined with the customer supply division.

The company denied the separation of the power generation arm was related to a Government review of the ESB which is due to look at the future ownership of the power stations.

Earlier this year management floated the idea of leasing or selling off two power stations as a way of reducing the company's dominance of the Irish market.

A spokesman said the changes were made so the company was able to reflect the modern Irish electricity market place and "to ensure the company is positioned to meet the challenges presented by those changes." The changes, which also involve movement in personnel, take immediate effect.

While the power generation arm will become a stand-alone unit, ESB customer supply, the part of the company that deals with customers, will now form part of a new division known as customer supply and group services. This division will include administrative departments and customer supply activities.

All the company's unregulated and international generation businesses will be gathered into a division called ESB international.

While most of the companies in this division are based overseas, it will also include the Synergen power plant in Ringsend, which is part owned by Statoil and ESB, but fully operated by ESB.

In terms of personnel changes, Seán Wyse, formerly head of commercial enterprises, becomes executive director, customer supply and group services.

Michael McNicholas becomes executive director of ESB International. He was former executive director of the generation business. The position of executive director (power generation) will be filled in the coming weeks, the company said.

Commenting on the changes, ESB chief executive Pádraig McManus said recent market changes had to be reflected within the ESB corporate structure.

"I believe the revised management team in place can best meet the challenges of the open market and deliver quality and services not just for ESB but for all our customers," he said.