Householders will be able to pay utility bills at corner shops and late-night convenience stores under a scheme unveiled by the ESB and Bord Gáis yesterday.

The two companies have closed an agreement with UK company PayPoint, which is providing cash bill payment services at 140 retail outlets, rising to 500 next year.

PayPoint has also reached agreements with NTL, Vodafone and O2, and Intrum Justitia, and is in negotiations with a number of local authorities.

The company hopes to facilitate one million transactions worth between €12 million and €15 million over the next year.

The scheme offers consumers greater flexibility and will help many to manage budgets on a weekly basis, said Mr Charles Chapman, ESB Customer Services general manager,

As the Republic is a cash-intensive society, with only 70 per cent of the population possessing bank current accounts, PayPoint anticipated heavy demand for its services, said the company's managing director, Mr Dominic Taylor.

A 16-hour helpline will be available to retailers, who are to be offered what PayPoint describes as "competitive" commissions.

Established five years ago, PayPoint processes 40 million transactions worth €2.5 billion annually.