A SECOND group representing ESB workers has pulled out of the talks on proposals to split up the State energy company.

Consultations on Government proposals to transfer ownership of the national grid – the electricity distribution system – to another State agency, Eirgrid, began last week under the chairmanship of Fergus Cahill, former head of the Irish National Petroleum Corporation (INPC).

Workers are opposed to the move and the unions representing them pulled out of the consultation at its first session on Friday.

The board of the company’s Employee Share Ownership Plan (ESOP) wrote last week to the Minister for Communications, Energy and Natural Resources, Eamon Ryan, arguing that as a shareholder, it should have been consulted before he appointed Mr Cahill.

At the same time, the ESOP board wrote to Mr Cahill telling him that it is unable to take part in the process until it has received clarification from the Minister on Mr Cahill’s terms of reference and other matters.

Last year, Mr Ryan said he would appoint an independent chairman to hear the views of the various parties that will be affected by the transfer of the grid to Eirgrid’s ownership.

The ESOP’s refusal to take part until it gets the clarification it is seeking from the Minister means that it is the second stakeholder, along with the group of unions, to opt out.

In its letter to the Minister, the ESOP says that, as the other shareholder in the ESB, it is disappointed not have been consulted on Mr Cahill’s appointment. “We would now seek clarification on both his terms of reference and process to be undertaken,” it adds.

The board of the trust argues that documents circulated to the various parties involved indicate that Mr Cahill’s review is looking at how best to transfer the grid rather than looking at various options for its ownership and management.

As well as clarifying Mr Cahill’s terms of reference, it wants Mr Ryan’s assurance that the process will consider all of the potential ownership and management structures.

The Department of Communications, Energy and Natural Resources pointed out yesterday that when Mr Ryan announced last year that he would establish the review process, all direct stakeholders would be involved, namely ESB and Eirgrid managements, ESB and Eirgrid unions, ESB ESOP, Commission for Energy Regulation and the Department of Finance.

“The terms of reference for this analysis will be drafted in such a way that guarantees that all views will be taken into account in a fully transparent way,” the Minister added.

The unions are opposed to the break up of the ESB on the grounds that the Government guaranteed them in 2000 that this would not happen.

They also claim that the consultation process is treating the transfer of the grid as a “done deal”.