Oireachtas Joint and Select Committees

Tuesday, 20 June 2017

Joint Oireachtas Committee on Communications, Climate Action and Environment

Decarbonising Transport: Discussion

5:10 pm

Mr. Garrett Blaney:

On the question regarding when we intend to make the decision, the intention is to make it over the summer. We do not propose to defer it. We will try, as much as possible, to do it in conjunction with the Department. What we want is joined-up thinking on this issue.

From a CER point of view, regardless of the decision, we will have an ongoing interest in electric vehicles and the implication for networks.

I take what Deputy Eamon Ryan has said about the impact on the networks. Electric vehicles draw on the resources of the electricity system on the demand and storage sides. It is important for us to try to get that value from the point of view of the electricity system. I am the chair of a European working group that is looking at the future of distribution systems. A wide range of European regulators, including those from Norway and Denmark, are represented on that committee. We need to be very clear about the role of the regulator. As an electricity regulator, the CER regulates the electricity system. The CER is not a transport regulator and does not regulate the transport system.

We have spoken to our Norwegian and Danish colleagues about best practice. It is interesting that a change in some of the incentives in Denmark has had an effect on the take-up of electric vehicles there. The key mechanisms that are driving this at European level are State and local government funding. They are the primary vehicles being used across the rest of Europe. I do not want to make a comment on that other than to say that from a regulatory point of view, we are limited in statute in what we can do to provide supports in this area and we are limited in legislation, including European legislation, in how far we can go to impose this as a cost on all the electricity users across the system. There is a view right across Europe - this is a key part of the legislation - that the market is good at coming up with clever ideas and finding solutions in new innovative areas, but such initiatives do not necessarily come from the natural monopolies, which are the network companies. We will try to incentivise the network companies to think clearly ahead, to look at research and development processes and to understand the implications for the network. We have to be careful about using that as the primary driver for supporting electric vehicles in any new area of the transport sector. We are picking this message up from our colleagues across Europe as well. I will be happy to share with the committee the knowledge we are picking up at European level. We will try to make a decision in conjunction with the Departments in order that there is as much joined-up thinking as possible across regulation and policy matters.

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