The electricity regulator Mr Tom Reeves has moved to open up the Eur 15 million public lighting market to competition for the first time.

There are more than 30,000 public lights in the State and the ESB has described the market as "significant". The market, known as the "unmetered" sector, requires 50 megawatts of power each year.

Apart from public light, the "unmetered" market includes bus shelters, telephone kiosks, electric fences, advertising signs, pedestrian lights and speed cameras.

However, the public lights are the biggest element of the "unmetered" market and make up the majority of the Eur 15 million total.

Mr Reeve’s office, the Commission for Energy Regulations (CER), havs invited electricity suppliers to submit their views on how the market can best be opened up.

A document from ESB Networks on the unmetered market has also been circulated among suppliers for comment. The regulator’s office has requested submissions and indicated that it hopes the market can open up by 2005, although an order will have to be signed into law first by the Government.

The office wants to set up a new framework this year for how the system will work once competition is introduced. Among the companies likely to be interested in the unmetered market are: Energia, Bord Gais and Airtricity.

While the market is small in comparison to operating a large power station, contracts to supply the public lights could prove appealing because they allow power companies to balance their supply and demand a little better, say sources.

"The beauty of the public lights is they stay on late at night so companies can supply electricity to those when demand is very low elsewhere. Equally, lights need no power during the day so supply can be shifted elsewhere where demand is high," on industry expert explained.

While ESB is likely to retain a role in providing the infrastructure underpinning the unmetered market, any company with a license to supply electricity will be able to approach customers from 2005 onwards.

The main customers are local authorities. Getting contracts from large players like Dublin Corporation would be the aim of the new entrants.

The move by Mr Reeves to open up the unmetered market is also likely to prove popular with the local authorities which would be allowed invite bids from several suppliers, not just the ESB.