Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

If there is any detail on the cost of electricity that is generated by wind energy, versus traditional oil generation and-or possible imported nuclear energy, can Mr. Nolan explain who the CER arrives at a price taking all of that into account? In arriving at the unit price, does the CER consider the wider competitiveness of the economy and the social affordability when setting prices? One of the biggest overheads of small to medium enterprises is energy. We can continue to raise prices if we are going to reduce economic activity. Does that come into the consideration of the CER?

Mr. Nolan also mentioned the circumstances that cause challenges on the social side. Unfortunately, there are still many disconnections for people who simply cannot afford their utility bills. Are these taken into account generally when the CER is setting the price? Mr. Nolan said that the switching rates are quite healthy when compared to other jurisdictions but they have gone from 20% in 2009 to 11% in 2012. Perhaps he can explain why that has happened.

I note from the presentation that the CER remit goes into the approval of capital expenditure for the various utilities. Is it right that the CER must approve any major capital investments by utility companies before they go ahead with them? The EirGrid proposals are topical. Does the CER have a role in approving those investment proposals? If it does, are comparisons made between an overground investment versus an underground investment? I ask that because many members of the public are calling for underground proposals from EirGrid. What impact would that have on the unit cost of electricity? There needs to be more clarity on this issue. We are told that putting wires underground costs three times more than overheads. If that is the case, does it have an impact on the unit price of electricity?

The CER is taking on a new role, with responsibility for water networks and systems. The CER is independent and responsible for ensuring appropriate standards of supply of all utilities, including the gas, the electricity and now water. It is my understanding that where an electricity supply is contracted to a business or domestic user, such an electricity supply must to be a certain standard, as per the contract. Do penalties apply if that supply or utility is sub-standard? Does the CER have a role in that? If somebody has a contracted electricity supply and it is sub-standard, the utility is penalised to some degree. Will such penalties apply in the case of water, if pressure or quality of the water are substandard? What is the role of the CER in setting the free threshold or allowance for domestic consumers with regard to water?