Oireachtas Joint and Select Committees
Wednesday, 25 February 2015
Joint Oireachtas Committee on Transport and Communications
Energy Prices: Discussion
9:30 am
Patrick O'Donovan (Limerick, Fine Gael) | Oireachtas source
As I concur with everything Deputy Noel Harrington said, I will not repeat it.
Recent commentary has suggested one could abolish Irish Water's charges and transfer them to those paying commercial rates. Presumably, all of the companies represented are paying commercial rates to local authorities, be they wind energy producers or engaged in the use of gas or oil. Using that analogy, will they provide an insight into what it would mean to the ultimate user of electricity if, for argument's sake, commercial rates were to be dramatically increased to subvent the investment by local authorities in water infrastructure? A person in my constituency who generates wind energy recounted to me that his commercial rates had risen dramatically.
There is a wind-operating facility on his property.
I wonder what level of engagement those present have had with the Department of Public Expenditure and Reform and local authorities on their companies' competitiveness because I presume that every increase in commercial rates by the local authorities ultimately wind up with the consumer. Certainly, these people do not take the hit for it. Perhaps they would provide me with some degree of insight as to the engagement they have had with the Department of Public Expenditure and Reform. For instance, have they made a submissions to the Valuation (Amendment) (No. 2) Bill 2012 that is currently going through the Dáil and have they engaged with the local government management association because I understand that there has been much commentary on this, particularly in the wind energy context? The reason I ask is it affects my constituency. It affects the Chairman's constituency too. It affects the constituencies of all members present because we all come from coastal constituencies and those are the ones most likely to produce wind energy. If there is to be investment in it in the future, there needs to be a level playing field in terms of the commercial rate base. From what I have seen, that is not the case. The change that has taken place in how the valuations are determined for the energy sector, not only in wind but as a whole because we are looking for micro-producers to the grid as well, makes it prohibitive. However, they might address my first comment, which is, if they were to take the existing increase that local authorities are seeking, together with the push that is there from the Valuation Office and the suggested political push that they take on Irish Water as well, how would that go down with them?
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