The ESB should be able to set its own prices and compete in the residential electricity market by early next year.
But the Commission for Energy Regulation has warned ESB customers that they should not expect significant drops in their bills.
The CER published its plan for deregulating the market this morning. The new plan states that ESB will be allowed to compete when it controls only 60% of the market share. Currently it has just over 70% of the market.
Bord Gáis Energy has enticed more than 300,000 customers away from the ESB, while Airtricity has secured under 200,000 customers.
The regulator warned, however, that it was prepared to intervene in the market if the ESB significantly increased its market share post deregulation. But it declined to say what action it would take.
Before deregulation can happen, the CER is demanding that ESB Customer Service change its name, or brand, as this had the capacity to distort competition.
The regulator said the ESB would have to have what it called a 'credible commitment' in place, rather than actually have the brand introduced.
On future prices, the CER said it did not anticipate that there would be a significant change when electricity prices were reviewed in October.
On deregulation, it said this in itself would not result in a large drop in electricity prices for ESB customers, but the open market would continue to act as a mechanism to drive down prices across the board.
The ESB has welcomed the CER plan, describing it as a 'significant milestone' and a positive step for customers.
The company said it looked forward to competing in an open market but could not comment on what future prices would be.
The ESB noted the CER's stipulation that ESB Customer Service has a credible commitment on rebranding itself before full deregulation takes place.
'Changing a long established brand is a challenging and complex undertaking that requires careful planning and implementation, in order to avoid customer confusion and uncertainty,' a spokesman for the company said.
