The ESB group of unions will meet on Tuesday to consider a proposal to ballot all staff for industrial action. It is regarded as certain that the unions will agree to the holding of the ballot.

The unions backed away from open confrontation with the government before the general election, but their determination to oppose plans in the white paper on energy remains undiluted.

At a meeting between the minister and the ESB unions last week, Ryan signalled his support for the white paper, which proposes transferring ownership of the national grid from the ESB to another state company, Eirgrid, as well as a series of measures to reduce the ESB's perceived dominance in the marketplace.

The ESB board has already agreed, despite opposition from the four worker directors, to divest 1,300 megawatts of its existing power plants as part of a deal with the Commission for Energy Regulation whereby it would reduce its market share in the local power generation market. This divestment is also provided for in the white paper.

The unions are opposed to these closures, particularly against the backdrop of a break-up of the state company, and will cite this as the reason for any industrial action with the company.

It is understood the oneand-a-half-hour meeting between Ryan and the unions last Monday was cordial and polite, but that Ryan made it clear he supported the white paper and intended to carry it out.

Because of the summer break, the ballot of ESB workers is unlikely to take place until early September, raising the prospect of a difficult winter at the company.

Brendan Ogle, regional organiser of the T&G section of Unite, the biggest union in the ESB, told the Sunday Tribune that the unions were "shown to be right" when they argued that electricity prices were kept artificially above the market price (as part of the process of trying to encourage new entrants).

"All parties now agree that's the case and we will be shown to be right on the foolhardiness of separating the grid from the rest of the ESB, " he said.