Oireachtas Joint and Select Committees
Wednesday, 16 July 2025
Joint Oireachtas Committee on Climate, Environment and Energy
Climate Change Targets 2026-2030: Electricity Sector
2:00 am
Mr. Nicholas Tarrant:
A few questions have been asked and I will go back to the cost of operating the network. To go back to last November, when we submitted our business plan for PR6, the cost of the distribution network at that time for a typical domestic customer was approximately €254, the overall bill for a typical customer at the time was approximately €1,900 per annum, and the distribution costs were approximately €250. The overall bill has reduced slightly since, depending on the supplier. What happens regarding the charges for the distribution network is that we invoice the suppliers, and the supply companies then decide how they allocate this in terms of the offerings they put out to customers, regarding the size of the standing charge versus variable charges.
In terms of the cost of the investment in PR6, we estimated, based on the assumptions we had at the time and the investment programme, that on average the distribution element of the bill would see an increase of approximately €80 per annum across the PR6 period. It would be a slightly lower increase at the beginning in 2026 and then a bit higher towards the end. Ultimately, it will be a matter for the CRU to decide. It has published its draft determination, which is out for public consultation. This not only includes the distribution network element of the bill but also transmission and other elements that make up the overall unit cost. We are very aware that every euro counts for customers. A large number of customers are in arrears, if we look at the overall statistics in the energy sector. We are very focused on being efficient as an organisation as we deliver investment.
Storm Éowyn was mentioned. The decision regarding the costs of Storm Éowyn would be for the tariff year 2026 to 2027. It is a matter for the CRU, and it will be decided in the coming 12 months or longer. I am not able to say any more on this today.
Derrybrien is for another part of the ESB. ESB Networks is a regulated separate part of the ESB with a separate regulatory licence. It is the generation and trading part of the business. We are happy to follow up separately to make sure Deputy Daly gets a briefing on Derrybrien.
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