superann2u2

The ESOP letter to ESOP Participants below and the Press Release issued by the ESOP Chairman make very interesting reading.

Have a read and submit your comments.

ESB ESOP Trustee Ltd.

17 December 2007

Dear ESOP Participant
Pleased find enclosed a Statement of Individual Notional Allocation Account, showing the total number of shares notionally allocated to you. This statement should be retained carefully by you in your ESOP folder.
We advised you in September that the proposals developed by the Trustee in consultation with ESB and the Group of Unions for a fair market for the shares have been reviewed by the Revenue Commissioners and are now with the Departments of Finance and Communications, Energy & Natural Resources for their approval. As we explained, the Trust Deed governing the ESOP requires that we seek Departmental consent. Despite the best efforts of the Trustee and ESB, we are still awaiting the Departments’ approval. We will be writing to you, setting out the proposed internal market arrangements, as soon as we have this.
Since our statement to the ESB Annual General Meeting in September, there has been increasing evidence of a shift in European energy policy and, in particular, that the separation of grid assets — as set out in the White Paper — is not required. Indeed, it is now recognised that VIU’s in smaller markets need to remain intact if they are to compete against the big players. In its role of acting in the best interests of all ESOP participants and protecting the value of our shareholding in ESB, the Trustee has requested a meeting with the Minister to discuss recent developments in Europe and has issues a press statement on this (copy enclosed)
1 wish you a Happy Christmas and a peaceful new year.

Yours faithfully
David Beattie
Chairman  

Statement by the ESB ESOP Tuesday 11^th December 2007

French and German energy plans to have serious implications for Ireland  

“Government’s flawed ideology risks driving Ireland into an electricity cul de sac in 2008”

Huge concerns are being expressed across Europe on the proposed policy of unbundling – separating electricity network and supply activities -yet the Irish government is determined to press ahead with the break up of the ESB in 2008 through “unbundling” and taking away its transmission assets. Commenting on this, the ESB ESOP chairman, David Beattie believes that this will have serious implications not only for ESB but also for Ireland. France, Germany, and at least 10 other member states have told the EU Commission that they want a major re-think on the energy policy of unbundling. Ireland risks becoming isolated from the rest of Europe if it presses ahead with the Government’s unbundling plans.
Mr. Beattie said, “The expert view from Brussels is that an alliance of large and small member states that form a majority of EU members will manage to change the EU’S unbundling policy that is now accepted as fatally weakening electricity companies, especially those in smaller markets, leaving them unable to compete and open to takeovers, in particular by privately owned Russian energy companies. It looks like our government is now on a solo run and is bringing the Irish market down a cul-de-sac in the opposite direction.
The ESB ESOP has written to the Minister for Communications, Energy and Natural Resources, Eamon Ryan TD, requesting an urgent meeting to discuss this development. Mr. Beattie added, “Two countries that are opposed to unbundling, Slovenia and France, will hold the EU Presidency in 2008 and it is extremely unlikely that even a “watered down” version of the discredited unbundling policy will emerge at European level during next year. At such a time, the ESB ESOP believes, any action by the Irish government to break up the ESB in pursuit of an abandoned EU policy would be reckless and deeply damaging. A Government-weakened ESB competing with even stronger and more powerful energy companies from other EU countries does not bode well for Ireland, the ESB or its customers.
“In the face of strong and predatory competition from giant utility companies from within and without the EU there is a growing acceptance that forcing electricity companies to dispose of their grids or transmission networks doesn’t increase competition or lower costs, but only weakens strong companies like the ESB which are already operating in a vibrant, local competitive marketplace where they have demonstrated their ability to reduce prices to consumers, as they did last month.”
He concluded, “A well-regulated European energy market needs strong companies from both large and small member states competing vigorously in a fair market. If the Irish government presses ahead with its ideologically flawed policy it will have exactly the opposite effect on the ESB. With an all-island market now in place, and with on East/West interconnector at planning phase, the ESB is now competing with giant utilities in the largest EU member states.
Most EU companies are not now going to be forced to give away their transmission assets while the Irish government insists on it. Most EU companies are already much bigger than the ESB yet our Government proposes reducing and weakening the ESB at a time when its only potential for growth is in international markets and to do this, like energy companies from other small countries, it needs to be a strong and fully integrated entity.”