The ESB has reported operating profits of €469m for 2011 - an increase of 38% on 2010 - despite the difficult market conditions.
It said that electricity demand is slow to recover to its previous high levels amid continuing high commodity prices.
The ESB is recommending a dividend of €72.5m for 2011, which bring total dividends paid to the Exchequer over the last ten years to near €1 billion.
In 2011, the ESB raised €1.3 billion to fund its investment programme and much of this will be invested in ''critical energy infrastructure'' in Ireland.
ESB chief executive Pat O'Doherty said that the economic downturn has resulted in significant challenges in terms of customer arrears management. He said that over 300,000 customers has availed of its easier payment arrangements and new pricing plans.
The company is also installing pay-as-you-go meters for those in most difficulty and are continuing to promote energy efficiency programmes.
The company made a further €70m in cost reductions under its Performance Improvement Programme through a combination of pay cuts and a reduction in staff numbers. This brings the total savings so far under this programme to €165m.
2011 also marked the first year of ESB's ownership of NIE, Northern Ireland's transmission and distribution
network. The company said the investment is well set to deliver enhanced efficiency and service for all of ESB's and NIE's customers.
