Organisational restructure

Interview with Chief Executive Padraig McManus

Padraig, you have recently announced a major organisational restructure, what is the background to this?

Well as you know we set out our Strategic Framework to 2020 last year which identified key areas for growth for the next decade. The ambitious targets outlined in this Framework involve major investments at home and abroad across our business.

However in pursuing this strategy - and we will pursue it and deliver it - we must clearly understand and grasp the scale of the economic, regulatory and environmental issues facing us, particularly in the context of the present severe recession. The enormous consumer contraction where inflation has turned to deflation and demand for electricity has fallen [for the first time in ESB's history]. In addition we are facing very strong competition not only in generation and supply of commercial customers but also now, for the first time, in the domestic supply market.

All of this impacts the way we do business. A more flexible and efficient organisation is necessary to our continued success. Put simply this means we need to achieve across the board cost savings. This is critical to the delivery of competitive prices to our customers. As part of this focus on competitiveness I am implementing organisational changes across the company.

How exactly will this assist in securing the future of ESB?

I have realigned the organisation of the Executive Directors team to drive the policies and projects necessary to maintain our financial growth.

This will ensure that ESB continues as an innovative leader in the energy industry at home and abroad with the capacity to deliver high quality, reliable service to its customers. We need to get to a position where our businesses are enabled to compete effectively. Historically for good reasons the regulatory model imposed costly duplication on ESB Power Generation, ESB International and ESB Customer Supply. However the open, competitive market which is now successfully operating makes these restrictions redundant and wasteful. We want to see these restrictions removed so that ESB can compete on a level playing field. And the CER are commencing a consultation process in this regard.

We have also commenced a root and branch analysis of all our costs to ensure that they are aligned with best European practice. The Performance Improvement Programme (PIP) has been established to drive this programme.

Have you the support of the Board and Management in this strategy?

The Board and Management are fully committed to the implementation of our Strategic Framework to 2020. This sets out ambitious investment targets in relation to investment in Networks, in a modern generation portfolio, in renewable energy and international growth. We have set ourselves the objective of becoming a leading renewables company and in achieving our CO2 reduction targets.

How confident are you that ESB will continue to grow as an energy provider?

ESB enjoys unique strengths. Few companies can point to such a strong record of achievement spanning over 80 years. Our success has been grounded in our strong commitment to our customers and our enduring partnership with all stakeholders.

What can you say to staff to address their concerns at this time?

We have many issues facing the company, an active competitive market, a reduction in customer connections, a reduction in demand and deficit in our Pension Fund. But we have always faced major challenges and overcome them and together we will work to address these issues. I want to acknowledge that - the hard work and commitment of ESB staff.

We are determined to build on ESB's many capabilities and to emerge as an even stronger, more streamlined Irish and International Energy Company.

EDT

  • Chief Executive: Padraig McManus.
  • Deputy Chief Executive: John Shine.
  • Company Secretary & Head of Corporate Affairs: John Redmond
  • Executive Director Sustainability: John Campion.
  • Executive Director HR: Luke Shinnors.
  • Executive Director Generation Trading & International Activities: Michael McNicholas.
  • Executive Director Energy Solutions: Bríd Horan.
  • Executive Director ESB Networks Ltd.: Pat O'Doherty.
  • Executive Director Finance & Commercial: Bernard Byrne.