The board of EirGrid, the State-owned company which is to operate the electricity transmission system, has selected Mr Dermot Byrne, a senior ESB executive, as its chief executive.

An electrical engineer, Mr Byrne has extensive senior management experience in the electricity industry and is a former head of ESB Networks.

EirGrid has yet to take over the responsibilities of ESB National Grid due to difficulties in getting staff to transfer to the new entity.However, recent negotiations have brought the transfer nearer. In the months ahead, it is also likely that EirGrid will acquire its own office space, away from the ESB group.

The complete separation of EirGrid from the ESB Group is strongly supported by the Government and the regulator, the Commission for Energy Regulation (CER).

Mr Michael Tutty, a senior CER member, recently told The Irish Times the separation of the two companies was essential to end any misconceptions about the Irish electricity industry in Europe and elsewhere.

Mr Byrne worked in senior positions in ESB National Grid in the 1990s. More recently, he was head of ESB Networks, where he oversaw major investment in transmission and distribution infrastructure. His current position is group commercial manager at ESB.

EirGrid chairman Mr Eddie O'Kelly said: "Mr Byrne has wide experience and expertise, which the board and I are confident will enable him to be very successful in this role.

"The board and I see this as a very significant step on the road towards EirGrid taking over the role as Ireland's independent transmission system operator.