The Taoiseach has ruled out using the ESB to roll out rural broadband claiming it would be a "bit much to ask".
Both Fianna Fáil leader, Micheál Martin, and Labour leader, Brendan Howlin, believe that the State-owned electricity company could deliver the controversial National Broadband Plan (NBP).
But Leo Varadkar said that to do this Government would have to go back to "square one" in the tender process and said the ESB already has a significant challenge in delivering on climate action.
Speaking at the launch Fine Gael's European Election manifesto in Moate, Co Westmeath, Mr Varadkar said Cabinet could make a decision on the NBP as early as next week.
Asked about using the ESB to provide rural broadband, Mr Varadkar said: "We have examined the ESB option. ESB pulled out, as you know, and it's not possible under basic fairness and European law in the 21st Century to just give the contract to a company. ESB would have to bid again so to allow ESB to do it we would have to go back to square one, retender the whole thing. They would have to bid again and even then they mightn't get the contract."
"Also in our conversations with ESB, they had been asked to really focus on climate action, on delivering in terms of renewable energy, in terms of rolling out the infrastructure for electric vehicles and it may be a bit much to ask the ESB to deliver on renewable energy and also deliver broadband. It's two very big projects to ask one company to develier on," said Mr Varadkar.