Vertically Integrated Utility (VIU)

ESB has operated as a Vertically Integrated Utility (VIU) since its inception in 1927.  The rationale behind maintaining a VIU model is that efficiencies of scale can be made, borrowing to expand can be less costly and resulting savings can be passed on to the customers.

The McCarthy report suggests that the sale of certain state assets should be pursued to gain at least €2 billion into the state coffers.  This is a reiteration of the Government Green Paper on Energy published in October 2006, and a subsequent White Paper published in March 2007 by the then Minister for Communications, Marine and Natural Resources, Noel Dempsey.

Amongst the recommendations contained in these documents was the proposed transfer of Transmission Assets from ESB Networks (and BGE) to EirGrid as a new Smart Grid company, and the possible sale of the Networks business to private industry. However, in July 2011 the new Minister following consultations and taking into account present economic circumstances made a decision to retain the transmission assets in ESB.  

For now, ESB remains a Vertically Integrated Utility.