ESB loses €32million due to write-downs

THE ESB recorded a loss of €32million last year due to the cost of moving to low-carbon power plants.

The semi-state electricity company said it had to write down the value of a number of its power plants, including a reduction of €141.7million in the value of the coal-burning Moneypoint station in Co. Clare.

Moneypoint will have to switch to renewable energy between 2025 and 2030 as part of Ireland’s EU commitment to reduce its carbon emissions. In total, the ESB reduced the value of its power plants by €276million in 2017.

The company made a €186.1million profit the previous year.

Its loss comes as the company moves towards an all-Ireland energy market in May. However, Brexit is expected to put a dent in those plans as the North will no longer be subject to EU law. The company pointed out that, excluding the write-down in the value of its fossil-fuel plants, it made an operating profit of €490million last year. It said it had a ‘satisfactory financial performance in challenging market conditions’ in 2017. It also said that the power plant write-downs were exceptional and the plants represented just 2% of the ESB’s total assets.

It said the write-down had been a ‘prudent decision’, best done before the integration of markets in May. It said it is continuing to invest in low-carbon energy generation such as wind and solar. It also said it invested €867million in infrastructure and other investments during 2017. This included €94million in wind power.

It also noted that Storm Ophelia caused significant damage to the electricity network in October.