ESB has identified “energy affordability” as a “principal risk” in its latest annual report which shows the organisation made an operating profit, before exceptional items, of €847 million in 2022.
Its latest set of annual accounts show that in the 12 months ending December 2022, ESB – which is majority owned by the Irish Government – saw its operating profit, before exceptional items, jump by €168 million year-on-year.
ESB operates across the electricity market, from generation through transmission and distribution, to supply customers.
It said today (Wednesday, March 22) that “profits from generation businesses” operating in the wholesale market in both Ireland and Great Britain were the primary driver of ESB’s significant increase in operating profits.
The state-owned group has proposed paying an enhanced dividend of €327 million, compared to the €126 million it paid to the state based on its 2021 results.
ESB Hardship Fund
In a statement to Agriland, ESB said it recognised “the impact that the energy crisis and price increases have had on our customers and the communities which we serve, including farm families”.
“Through the provision of a €50 credit to each of our residential customers and increase in Hardship Fund, Electric Ireland did not make a profit in its residential business during 2022.
“For larger farms on SME (small- and medium-sized enterprises) tariffs, Electric Ireland reduced electricity prices on March 1, mitigating somewhat a significant increase that took effect on January 1,” the energy organisation stated.
According to Paul Stapleton, ESB’s chief financial officer (CFO), the organisation delivered record levels of capital investment totaling “€1.4 billion” in 2022.
This included ongoing investment in critical energy infrastructure and “energy infrastructure for a low-carbon system” such as €130 million invested in new flexible generation and almost €300 million advanced to renewable joint venture projects, chiefly in the offshore sector.
The latest set of financial accounts also show that ESB’s Customer Solutions (including Electric Ireland) reported an operating loss of €109 million.
“As a regulated entity, ESB is required to operate Electric Ireland, its supply business, on a standalone basis,” ESB’s CFO said.
“It is not permitted to subsidise that business (including the prices that it charges to its customers) with revenues earned from its networks or generation businesses.”
ESB said Electric Ireland “forgoed” residential profits in 2022 to provide more than €55 million in direct customer credits and Hardship Fund support.
In its latest annual report the organisaton also highlighted that it currently employs more than 8,000 people and contributes more than “€2.3 billion” annually to the Irish economy through dividends, investments taxes and jobs.