ESB workers to vote on sale of power plants this week

CLOSE TO 200 ESB workers will vote this week on the sale of two of the State power company's generating plants to Spanish utility Endesa.

The Spanish group agreed to buy Tarbert in Co Kerry and Great Island in Wexford last July from the ESB for €450 million.

The deal is conditional on getting the backing of both plants' workers, who have the option of joining Endesa, remaining with the ESB, or leaving.

The 126 staff at Tarbert and their 65 colleagues in Great Island are due to be balloted this week.

A majority in each power station, rather than a majority of the total, has to vote in favour of the deal before it can go ahead.

The ESB, Endesa and trade unions have been in three-way talks about severance for those leaving the ESB and the terms and conditions for those joining Endesa.

The final details of the various packages on offer will be put to workers this week. The actual terms and conditions are not known at this stage.

Voting will take place towards the end of the week, and the result should be known by the weekend.

The ESB is selling the plants to honour part of its side of an agreement with the Commission for Energy Regulation.

The regulator allowed the company to go ahead with building a new €400 million facility in Cork, but on condition that it disposed of part of its existing generating capacity.

The State has not allowed the ESB to build new electricity generating plants in the Republic for the last decade as it wanted to encourage independent players into the Irish market.

The ESB yesterday confirmed that it had reached agreement on the sale of two power stations, two peaking plants and two sites to Endesa.

The sites are in Lanesboro, Co Longford, and Shannonbridge, Co Offaly. The peaking plants are in Tawghnamore, Co Mayo, and Rhode, Co Offaly.

Endesa will be the biggest utility to enter the Irish market. Owned by Italy's Enel, it recently reported its first-half profit more than quadrupled after it sold assets in Europe and charged higher prices for power in its home market. Net income rose to €6 billion from €1.26 billion a year earlier.