ESB opts not to sell Shannonbridge power station

The ESB has decided not to dispose of Shannonbridge and Lanesboro power stations in a surprise u-turn.
It follows a previous announcement in October 2013 that the company would sell both power stations in order to help pay a special €400m dividend to the Government.
The company, in a statement on Monday, said detailed analyses carried out in preparing the assets for sale indicated that it would be financially more beneficial for ESB to retain ownership of the peat plants and fund the payment of the remaining dividend target by drawing down additional debt from ESB’s bank facilities.
In October 2012 the Irish Government requested ESB to develop proposals for the sale of some non-strategic generation capacity, with the specific objective of delivering special dividends to the Government of €400m by the end of 2014.
In February 2013, ESB started this process by announcing that it intended to sell its 50% shareholdings in two international tolling plants, Marchwood Power Limited (UK) and Bizkaia Energia SL (Spain). The sales of these assets have been successfully completed, and special dividends totalling €197m from the proceeds of the sales were paid to the Government earlier this year.
However, the ESB has now said it would not be selling the two peat-fired plants and instead would draw down additional debt from its bank facilities to meet the €400m demand.
“It is now ESB’s intention that the peat plants and their associated cashflows will be retained, and will be available to the company to support the additional funding requirements arising from payment of the special dividend. This course of action means that rather than selling the physical assets and getting upfront proceeds to enable payment of the special dividend, the cashflows from the assets will be utilised in a different manner to yield an overall better financial result, but with the substance of the approach being the same as if the assets had been sold,” it said.
The decision has been welcomed in the midlands with Fianna Fail Laois/Offaly TD Barry Cowen stating: “I’m glad the Government has seen the error of its ways, there were genuine fears for the 80 staff at the plants, while the future of their pension entitlements were placed in doubt.'