Having recorded huge profits in the first six months of the year, ESB look to reward staff with millions in gift vouchers
By Conor O’Carroll
The state-owned Electricity Supply Board (ESB) is seeking to purchase an estimated €21 million in gift cards and vouchers for its employees and as part of its ‘Beat the Peak’ initiative.
The request for tender, released today, details the two-year contract offered by ESB that will see the chosen bidder purchase almost €13 million in employee gift vouchers for delivery in December 2023 and January 2024.
Two purchases of up to 6,200 gift vouchers with a face value of €1,000, two purchases of up to 550 gift vouchers with a face value of €500, and ad hoc purchases of gift vouchers with a face value of €50 and €30 will be required according to tender documents.
ESB’s profits have soared in recent months, with operating profit increasing to €676 million in the first six months of 2023, a rise of €300 million compared to the same period last year
The specific requirements for these gift vouchers state that they must include a “broad range of providers from across Ireland including online and not limited to one shopping centre, one retailer, one website or one particular town or city”.
The gift vouchers should also “at a minimum include retail, health and fitness, services, motoring, supermarket, fashion, [and] department stores”.
Periodic monitoring and reporting of recipients with no use on their gift vouchers is also requested.
The remaining €8 million is to be spent on providing “financial incentives” to customers participating in the ‘Beat the Peak’ scheme.
This initiative, launched last year, seeks to reduce electricity demand during peak events over the winter months by offering information to customers on how to “shift their individual energy consumption away from the evening peak” of between 5pm and 7pm.
ESB’s profits have soared in recent months, with operating profit increasing to €676 million in the first six months of 2023, a rise of €300 million compared to the same period last year. It is likely to surpass last year’s total operating profit of €847 as the winter months typically see greater demand and energy consumption.
2022 was itself a year of growth for ESB, with operating profits rising by almost 25%. Energy prices have increased substantially since 2020 driven first by the Covid-19 pandemic and then by Russia’s invasion of Ukraine.
Energy companies, along with ESB’s subsidiary, Electric Ireland, announced widespread price hikes as wholesale energy prices soared. However, according to the Central Statistics Office (CSO), energy prices have since fallen sharply once again.
In July, wholesale electricity prices fell to their lowest level since June 2021 and in August, they had fallen by over 70% compared to the previous 12 months. While there was a slight rise in September, wholesale prices are still over 60% lower when compared with last year, according to the latest figures released by the CSO.
This prompted energy companies, including Electric Ireland, to lower their prices, with the company cutting its electricity and gas rates by 10% and 12% respectively from the start of November.
These price cuts will be a welcome respite for people struggling ahead of the winter months, but fall well short of the drop in wholesale prices.
Following the announcement, Taoiseach Leo Varadkar TD, told RTÉ News that the reduction wasn’t sufficient and called for further decreases in the coming months.
ESB did not respond to a request for comment on their decision to seek millions worth of gift vouchers.
Update 23/10: ESB has since responded to our request for comment with the following statement:
“ESB recognises the impact the current cost of living crisis is having on our employees and we have agreed to make two voucher payments to our employees designed to go some way to meeting the financial challenges which our employees may face”.
