The Department of Finance has rejected Fianna Fáil's claim that the salary of the new ESB chief executive breaches the Government's pay cap.
Pat O'Doherty is to be paid €318,000, which is higher than the €250,000 semi-State cap introduced by the former Finance Minister Brian Lenihan.
However, the Department of Finance has said the Minister for Public Sector Reform, Brendan Howlin, had introduced "updated" pay caps earlier this year and the salary of the ESB chief is in line with those.
Fianna Fáil's Timmy Dooley said the Government should look again at the salary of the new ESB boss.
Mr Dooley said: "I think that this is going to have to be revisited.
"I think Brendan Howlin is going to have to come out as minister for responsibility in this regard, and give a very detailed explanation as to why he believes this individual is worth more than the salary cap being set for everybody else."
But Minister Pat Rabbitte has said the Government introduced updated pay caps earlier this year and the salary of the ESB chief is in line with those.
Mr Rabbitte said: "The ceiling for the new chief executive of the ESB is €318,000. I have no knowledge yet of whether the board has sanctioned the terms and salary conditions, but the cap was €318,000.
"The ESB was at the top of the pinnacle so I have no knowledge of anybody being paid €70,000 or anything on top of what has been agreed by Government.
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