Annual Accounts highlights continued savings and efficiencies
On wednesday 18th July 2007 ESB announced profits of €223 million for 2006. Launching the company's annual report, ESB Chairman, Tadhg O'Donoghue said the figures were encouraging, highlighting continued cost savings and efficiencies.
While welcoming the removal of tariff regulation from large electricity users, Mr O'Donoghue highlighted the prohibition on ESB from selling at below published tariffs as a barrier to competition and greater savings, "The sooner this restriction is lifted and ESB is allowed to compete on the same terms as independent suppliers the sooner efficiencies and savings can be passed on," he said. Referring to the recently published White Paper on Energy, Mr O'Donoghue said it provides exciting opportunities and ambitious targets particularly in relation to security of supply and renewable energy. He also said that for ESB it presents a number of challenges which must be assessed for the long term viability of the company.
The 2006 figures also show staff reduction of nearly 500, bringing the total employed by ESB to 7,800. Over the last five years staff numbers at ESB have reduced by 2,000 (20%).
The company also revealed that its pension fund is again operating within the acceptable zone for pension funds. ESB Chief Executive, Padraig McManus welcomed the figures and praised staff and unions for their contribution to addressing the issue. "The agreement reached between ESB, unions and staff to address this issue is a benchmark for the partnership approach, a process which has served ESB and its consumers well over the past decade and a half."
The Chief Executive commented that while the opening of the Single Electricity Market in November this year would be a welcome further step in the creation of "real competition," he warned against the over reliance on imported fossil fuels to meet our insatiable energy needs. Welcoming the Governments renewable targets he promised that ESB would play its part in the challenge to reduce the country's exposure to the international energy markets and would seek opportunities to grow its 600MW of renewable generation. ESB's capital expenditure for 2006 came to nearly €1bn with continued investments in electricity networks, generation plant and customer service improvements. It expects capital investment to continue at around €1bn annually to the end of the decade.
Internationally ESB has begun construction on the Marchwood plant in Southampton and is exploring opportunities in Spain, Poland and Wales.
Padraig McManus said ESB International continues to provide good growth opportunities for ESB in neighbouring EU markets.
