Oireachtas Joint and Select Committees

Wednesday, 4 December 2013

Joint Oireachtas Committee on Transport and Communications

Electricity Transmission Network: Discussion with EirGrid

11:40 am

Mr. Fintan Slye:

That is no problem. As I said, we seek to keep pylons 50 m from people's houses and in the current projects we are considering that is the case.

There was a question about who is funding the projects. Ultimately, these projects end up on the transmission asset base, which is, ultimately, with the ESB. They are funded over the long term by all electricity customers. Those in the ESB are the people who pay, ultimately. The projects involve capital outlay in the first instance and that is funded during the construction process. For example, there is the cost of building the project and that is funded by the ESB, which actually builds the infrastructure. Then, it transfers to what is called the transmission asset base and the ESB gets a rate of return which reimburses the company for the investment over several years. Reference was made earlier to the fact that typically the projects are depreciated over 30 plus years. I hope that answers the question.