Oireachtas Joint and Select Committees

Wednesday, 6 December 2023

Joint Oireachtas Committee on Social Protection

Water and Energy Connections in Rural Areas: Discussion

Ms Aoife MacEvilly:

As part of our role as regulator over both Uisce Éireann and ESB Networks, we established national charging regimes for connections. There were different timeframes. Obviously, the electricity one has been in place for some time. Uisce Éireann's is more recent. We looked to apply standard principles to the establishment of those charging regimes. These included cost reflectivity, equity and simplicity in order that people could understand the charges coming their way. On a national basis, there are standard charges, which both entities have outlined, and published metrics as to how more complex or distant connections are charged. All of those connection charging regimes were subject to intense public consultation over several phases and several periods. In the case of the more recently introduced regime, Uisce Éireann's, we engaged with An Fóram Uisce and user groups and tried to extend the consultation as broadly as we could, appreciating that it is a fairly complex process for individual users to engage with. The results are published charges. We also benchmarked and looked at international comparators in the EU and the UK in coming to those decisions. We also operate a dispute resolution mechanism whereby customers of either ESB Networks or Uisce Éireann who have a complaint about the connection offer made to them, having gone through the process with the relevant entity, can take that dispute up with our customer care team, which will resolve it against published criteria.

The Deputy raised an important question about contestability where others could come in and do some of the works. There is provision for contestability at a certain level, although it is probably more for larger connections to the electricity grid. A developer can ask for a third party to build the connection, subject to compliance with technical standards. For Uisce Éireann, we have recently introduced a policy in respect of self-laying on public roads. We can provide more information on that but, again, it is designed to bring in an element of contestability, subject to ensuring standards and compliance with technical requirements and, in some cases, safety requirements for customers.

The Deputy also asked a question about subsidies. I am not sure what is permissible under the legal framework as regards electricity but I note that it has not been the case in the past that the Government has subvented network development in Ireland at any level. The regime for Uisce Éireann is obviously very different and there are Government subsidies but, as the entities will have outlined, for individual connections, on the principle of equity, customers pay a portion of the shallow charges, that is, charges for connection to the key network. The costs of deep reinforcement, major works needed to support broader connections, are socialised and paid for by all customers. That principle of equity between how much an individual connecting customer pays versus the broader customer group is really important to us in coming to those decisions.

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