Oireachtas Joint and Select Committees

Tuesday, 23 January 2024

Joint Oireachtas Committee on Climate Action

Large Energy Users Rebalancing Subvention: Discussion

Photo of Lynn BoylanLynn Boylan (Sinn Fein)
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I thank the witnesses. I have a number of questions but I would like to pick up on the issues in the review. I welcome that ESB Networks has apologised for the error. Are the Department and the CRU willing to make an apology?

When this issue came into the public domain, we lodged FOI requests. In fairness to ESB Networks, it wrote to the regulator and asked whether the subvention was going to be scrutinised on an annual basis and the regulator gave a one-word response of "No". I believe some responsibility rests with the regulator regarding why this was not being audited on an annual basis in terms of how this is being implemented, and how the subvention was allowed to continue for so long.

We have heard from the Minister of State that the measure was being introduced because LEUs were facing high electricity prices. Yet again, through FOI requests, it was discovered that electricity prices for LEUs had fallen by 20% in October 2009. What analysis was done by the Department to verify that LEUs were facing very high electricity bills? What analysis was done by the regulator when the Department brought the proposal saying that this rebalancing in favour of LEUs was needed? Did the Department carry out its own independent analysis? How did the Department allow this situation to continue following the financial crisis? If it stacks up that LEUs faced very significant bills, why did this situation continue for 12 years after the crisis? Why was there no auditing, given the ESB requested initially that this would be looked at on an annual basis? Why was this set up and allowed to continue for 12 years? What independent analysis was done before this was set up?