The ESB's chain of 54 shops is believed to be the subject of a significant takeover offer which may be discussed today by a hastily convened board meeting.
ESB directors have been summoned at short notice to a meeting in Dublin to discuss general strategic issues. But senior sources have indicated that an offer from a major retailer for the shops may surface on the agenda. A stock exchange announcement from a British retail group could also be made in the near future.
The ESB previously described its retail arm as "a low-margin business competing in a very crowded market".
The ESB refused to comment yesterday, although senior management are believed to favour selling the loss-making shops. Two years ago, 27 outlets were closed as part of a restructuring programme.
The decision was badly received by consumer groups and local representatives. The Consumers' Association claimed at the time that the shops were facilities for people who had difficulties paying bills in other ways. However, the shops are believed to be struggling in the current climate.
ESB chief executive Padraig McManus has spoken in the past about the group concentrating on its core activities, which are the generation and distribution of electricity. He is also anxious for the ESB to expand its overseas operations via ESB International.
The company has also withdrawn from some marketing and sponsorship events because they do not fit directly with its business. The future of the shops is currently being discussed by the ESB's internal joint industrial council but, if a firm offer transpires, the company may want to speed up the matter.
The number of people using the shops is believed to have declined in recent years, mainly because consumers now have various alternative ways to pay their ESB bills. The shops have also found it difficult to compete on price in the market for electrical and white goods.
While some of the shops are located in busy shopping centres, others are not in prime retail areas. However, they would have a property value, sources point out. The shops are currently part of the ESB's commercial enterprises division.
It is understood a provisional agreement for purchase has been drawn up. However, it will require full ESB board approval and also co-operation from unions.
The ESB Officers Association is the main union representing the 300 staff in the stores. It is likely unions will demand a generous redundancy programme for any staff affected by the changes.
Revenue at the shops is understood to have come under serious pressure in the past year, with increased competition from large chains such as Power City, Dixons and Currys.
A number of supermarket chains are now also selling electrical goods.
The ESB is currently grappling with several major difficulties, including rising fuel prices and a €500 million pension deficit. However, its overall financial position remains strong and results are expected shortly to show rising revenues and a large dividend for the Government.
The Minster for Communications, Marine and Natural Resources, Noel Dempsey, is currently reviewing the whole energy sector.
He has not ruled out privatising ESB power stations, although he has indicated he does not favour selling off the transmission or distribution systems which he regards as national infrastructure.
