Dáil debates

Wednesday, 25 October 2006

 

Energy (Miscellaneous Provisions) Bill 2006: Report Stage (Resumed).

4:00 am

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)

We are dealing with the role of CER in developing an all-island market. Colleagues mentioned that we are not really sure what will happen. Representatives of the Northern Ireland regulatory body were before the Joint Committee on Communications, Marine and Natural Resources approximately six months ago and it was clear that the body regulates its side of the Border. On 1 November next year I presume the two regulators will work hand in hand. By definition, it seems one cannot have two regulators in a single market. It would be like having two European Commissions and therefore we will need to discuss having a single regulator. As my colleague stated, Commissioner Piebalgs was thinking of amalgamating the UK and Irish markets.

The amendments address a very important section. I commend the role the Government has taken thus far in developing this sector. It is a concrete example of the Republic and Northern Ireland working together for the good of the peoples both North and South. I hope further interconnection will lead to a better future.

When representatives of the Commission for Energy Regulation were before the joint committee discussing this very point, the then commissioner, who has since become a water commissioner in the United Kingdom, said to me that the single market's impact would be such that future prices would be less than they would be if there were no single market. This reminds me of a comment by a former leader of Fine Gael, Professor Garret FitzGerald. When he became Taoiseach, he had a famous mantra to the effect that the increase in the level of prices was falling. The public had to get its head around the idea that things would be much dearer but not as dear as they would have been in other circumstances. This is crazy to the ordinary householder.

In the context of the future amalgamation of the regulatory functions in the North and the Republic, such that there would be a unified all-island regulator, one must not only consider energy efficiency, storage, generation, security of supply and sustainability but also measures to alleviate fuel and energy poverty. In other words, the regulator should be concerned about the impact it is having on the households of this island. It should be provided for legislatively that it should be part of the regulator's duties.

During Question Time last Thursday, I suggested to the Minister, Deputy Noel Dempsey, that he should either accept my amendment to this section of the Bill or introduce further legislation to make it essential that a consumer panel be established within the Commission for Energy Regulation. I am in favour of the establishment of a panel of people, including experts and economists, who represent householders and businesses. I refer in particular to small businesses, which are being crucified, as we know, by the increases in electricity prices.

One of the most horrible things to have happened to people in this country in recent years happened on 1 October last, which was the day we trooped over to Government Buildings to be presented with the Green Paper on energy by the Taoiseach. The media were interested to know how many Ministers would turn up to sit beside him on the day that was in it because it was the same day the Minister allowed the Commission for Energy Regulation to increase gas prices by 34%. We were going in to talk about a bright energy future, but we were hit with a whammy of a gas increase of 34% on every household. One of the most interesting aspects of the events of 1 October was that the Minister, Deputy Noel Dempsey, not only produced the Green Paper but also slipped out the Deloitte & Touche report.

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