Dr. Stjohn O'Connor:

I would like to respond to three particular questions. On Deputy Luke 'Ming' Flanagan's question, I may have misspoken in that there is no financial penalty for non-compliance. The Deputy is correct that there is a huge economic benefit for us to deliver the 20% efficiency. Energy efficiency makes sense. It is the primary priority of all energy policy. From a competitiveness perspective, it is key. The Energy Efficiency Action Plan includes figures on what it would mean to Ireland Inc if we were to deliver the 20% target. I do not know those figures off the top of my head but will ensure a copy of the plan is forwarded to the committee.

Deputy Michelle Mulherin had a point about the single payment, which is an issue. Mr. Spratt has mentioned that the Minister, Deputy Pat Rabbitte, is having that discussion. From our perspective, we are examining technological solutions that may overcome the hurdle of a single payment to buy fuel. There were some interesting programmes that we funded via the Sustainable Energy Authority of Ireland and these have been pay-as-you-go oil solutions, which are interesting. It takes the need for a fill of oil from the home owner and people are only paying for what they use. It is like topping up mobile phone credit and is a really interesting solution. Problems are being worked out. We funded a pilot project last year in Northern Ireland and are funding a greater pilot project this year. I have high hopes we can overcome the barrier on the single payment and moving to a pay-as-you-go option in the oil sector, which is a much better solution that allows people to manage consumption much better than a single payment. It is an interesting area on which I am happy to make more details available if members so wish.

The energy efficiency directive was mentioned and I am happy to say I will be attending on Saturday. The energy efficiency directive covers a multitude of issues, the most relevant being that national renovation strategies must be put in place, as well as obligations on energy suppliers - the main part of the energy efficiency directive, with everything else wrapped around this.

I have also mentioned energy performance contracting. Yesterday we launched the exemplar projects that will test a new energy performance contract and framework. That work will be ongoing in the next couple of years. Effectively, we are producing national handbook on different ways of procurement. We are already well ahead of the game in that respect. There is another issue concerning combined heat and power, CHP, systems and ensuring they are taken into the generation mix.

I will focus on Article 7 as being key. It puts large targets on energy suppliers to deliver energy efficiencies. It is small but complicated and the interpretive note runs to 60 pages. We are considering it because we have 19 energy suppliers signed up to energy saving voluntary agreements covering electricity, gas, solid fuels and oil. This is one of the only countries in the world with that mix taken into account. The issue for us is whether the existing scene should continue or migrate to something new after 2013. That issue is before the Minister.