Noel Dempsey (Meath, Fianna Fail)

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"recognises:

that ongoing volatility in energy prices is an EU wide problem with the EU being the largest importer and second largest consumer of energy in the world and that some Member States have substantial indigenous energy resources unlike Ireland;

that natural gas and oil are internationally traded commodities and Ireland is essentially a price taker;

the dependence of BGE on gas imported from the UK, over 86% of our national requirement and that natural gas is the major fuel used in power generation;

that the average cost of procurement of gas for BGE had increased by some 50% over the last 12 months due to the increase in international wholesale gas prices;

the UK market which we share is increasingly reliant on gas and oil sourced internationally;

the geopolitical risk in oil and gas producing countries which must be addressed by the EU collectively;

that energy prices can adversely affect competition and jobs; and

Ireland's strong support for the development of a new common European strategy for energy underpinned by the principles of sustainability, competitiveness and security;

commends the Government on:

its commitment to delivering on energy policy priorities, including ongoing investment in energy infrastructure, ambitious targets for renewable energy, a substantive increase in energy efficiency and the continued opening up of gas and electricity markets to competition, with resultant benefits to consumers;

the publication of the energy policy Green Paper, Towards a Sustainable Energy Future for Ireland, which is informed by input from public bodies and organisations, including the National Competitiveness Council, Forfás, IBEC, the ESRI and the Enterprise Strategy Group;

its commitment to developing an all-island energy market which is designed to deliver, over time, some of the cost efficiencies and investments needed to promote an efficient energy market which contributes to competitiveness;

its liberalisation of the electricity and gas markets, with full electricity market opening introduced in advance of EU targets and steadily increasing levels of competition in that market as well as the gas market;

its strategy of providing increased electricity and gas interconnection capacity, including the development of a 500 MW east-west electricity interconnector and the doubling of north-south interconnection capacity, in order to underpin security of supply and continued economic competitiveness;

its policy of mitigating our exposure to volatile international fuel prices through enhanced fuel diversity, including the setting of ambitious targets and supports for renewable generation and indigenous supply sources;

the launch of a major national awareness campaign focussing on energy efficiency and the benefits to consumers which highlights actions that can lead to energy savings, increased competitiveness and enhanced security of supply;

enabling competition by reforming institutional arrangements and market structure and specifically reducing the market power held by any one player in price-setting generator plant; and

the proposed creation of a state-owned landbank of current and potential generating sites, thus removing a significant barrier to new entrants;

notes:

the fact that Fine Gael refused the opportunity to constructively participate in an all-party approach to developing energy policies for the future;

the CER's commitment to consult on a fuel variation mechanism in tariffs by the end of this year and a possible mid-term review of energy tariffs in 2007 should international fuel prices continue to trend downwards;

the CER's approach to cost reflective tariff setting which is designed to ensure the short and long-term financial viability of the energy sector and to ensure adequate investment in energy infrastructure. A secure and reliable electricity system is a prerequisite for economic stability and to attract the type of industries favoured by the Irish economy; and

the Energy Policy Green Paper commitment to undertaking a comprehensive sectoral review of the energy regulatory framework following the introduction of the Single Electricity Market in 2007.

I wish to share time with Deputy O'Flynn, by agreement.

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