Oireachtas Joint and Select Committees
Wednesday, 21 November 2012
Joint Oireachtas Committee on Transport and Communications
Regulation of Energy Sector: Discussion with CER
11:20 am
Michelle Mulherin (Mayo, Fine Gael) | Oireachtas source
I will. Whether we are talking about transport or energy generation costs, while I agree that we must conserve energy, I do not believe a developing economy or society can proceed on the basis that one must cut back on energy use. Because of our reliance on energy resources and we enjoy living here we cannot build on a model that suggests the availability of energy will not continue. I understand that is what the commission is about. We must look at having cheaper energy costs.
My next questions concerns the State's involvement in energy generation and supply. What is the commission's view on the monopoly held by the ESB? It seems we have an artificial situation, where the ESB has a monopoly, yet corrective measures have had to be taken regarding contracts with other companies in order that we do not fall foul of European requirements. Is that not a clear signal that the ESB needs to draw back a little from the supply side?
The most dynamic sector in developing renewable energy resources is the private sector. It is the one with investment capital. We can barely raise money for State projects owing to our capital problems, but there is private money available. Many private investors have expressed dissatisfaction and concern about the energy market here, particularly the supply side, approximately 75% of which is controlled by Bord Gáis and Electric Ireland and customers switch from one to the other. How is it in the interests of the State to compete with itself on the supply side? These questions must be answered and answering them will assist the private sector to become involved. As someone who comes from County Mayo on the west coast, I know there is a serious deficit when it comes to the grid. However, people who are trying to speculate and become involved are asked to trump up money well in advance of receiving a connection to the grid and without certainty that all of the ducks will line up. What is the position on grant funding and the issues that will impede our ability to achieve the 2020 targets? How proactive is the CER in dealing with the private sector which has legitimate concerns about how some things have been done to date in the context of the single electricity market?
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