The Government has ruled out a partial break-up of ESB, even though its own consultants maintained it would improve competitiveness and thereby reduce prices to the consumer.
The Deloitte report maintains high labour costs and inefficiencies at ESB power stations adds €100 million to costs, compared to its EU peers.
The decision was announced by the Minister for Natural Resources, Noel Dempsey, at the publication of the Green Paper on Energy, which aims to significantly reduce fossil fuels use and boost renewable energy.
Speaking to RTÉ News, Mr Dempsey said the government favoured the decommissioning of a number of power stations under the ownership of the ESB.
He said the sites could be leased to encourage other companies into the Irish market but the value of the asset would remain with the ESB.
Green Paper on Energy
Earlier, the Government published the first Green Paper on Energy in nearly 30 years, which aims to significantly reduce our reliance on imported fossil fuels by 2020.
The policy document maps out the Government's plans on how to guarantee security of supply while reducing costs and becoming more environmental.
34% rise in gas prices
A 34% rise in gas prices comes into effect today, despite calls from the Energy Regulator to reverse the decision.
On 8 September last, the Commission for Energy Regulation approved a hike in the price of gas by 33.8%.
The Commission blamed the increase on the rising cost of natural gas. Bord Gáis say the growing cost has added E150m to its costs.
The new price applies to domestic and small commercial and industrial users.
It takes effect today despite calls by the National Consumer Agency for the decision to be rescinded because it appears that wholesale gas prices will not continue to rise.
Bord Gáis says it regrets the increase.
