O'Rourke quarrel with ESB defused

Row? What row? The long-running quarrel between the Minister for Public Enterprise, Ms O'Rourke, and the ESB appears to have abated, with the company toning down its claim for a 3 per cent price rise for domestic customers.

While chief executive, Mr Ken O'Hara, said the company remained concerned about commercial customers subsidising domestic users and this would have to be addressed, he surprised many by saying the ESB was not pursuing the rise.

Recently, the company consistently said it needed an immediate price rise to help it face the competition which begins next February.

It said such a price rise was part of the Cost and Competitiveness Review agreed with staff and the Government in 1996. Ms O'Rourke has ruled out any price rise and said last week she would pass this policy direction on to the new electricity regulator, Mr Tom Reeves, who is expected to assume office at the end of the year and will have responsibility for the issue.

Presenting the company's results yesterday, Mr O'Hara said differing prices for domestic and commercial users was "just one of several issues" which would need to be addressed at some stage. "The issue of tariff re-balancing is one of timing, it is not going to happen overnight," said Mr O'Hara. He added that any changes in prices would depend "on the pace of competitors entering the market".

While the company rejected the accusation it was rowing back on its previous position, there was no doubt that softer language was being employed. The company is understood to be concerned that Mr Reeves will have his hands tied on the price issue by Ms O'Rourke. Reflecting this, Mr O'Hara said the company favoured an electricity regulator with a "role in the area of prices".

In terms of competition, Mr O'Hara said the company would not be "forced off the pitch" by its rivals. He rejected claims from one competitor - Viridian - that it was not releasing important information on the cost of linking up with its distribution system.

Viridian has held several meetings with Ms O'Rourke on this issue in recent months and it is possible she will request the ESB to release this information. However, the company claims this is a matter for Mr Reeves.