John Browne (Wexford, Fianna Fail)

It is as if volatility in energy prices is occurring on the island of Ireland and nowhere else in Europe. We should examine the facts. Gas is an internationally traded commodity. Ireland is essentially a price taker. Bord Gáis Éireann imports over 86% of the gas used in this country, the cost of which has increased by approximately 50% in the last year. International fuel prices are the major drivers of the cost of electricity, just as they are in the case of gas. Some 90% of our electricity is generated by fossil fuel plants. The price of oil increased from $10 per barrel to over $70 per barrel between 1997 and 2005. The increase in gas tariffs is not unique to Ireland. Some of the largest gas suppliers in the UK have faced price increases ranging from 24.4% to 34.6% in 2006. As I speak, gas is 7% more expensive in the North than it is here. The price of gas has increased by 74% in Northern Ireland since September 2005. The price of gas here has increased by 67% in the same time.

Electricity is currently 8% more expensive in the North than it is here. Last April, there was an increase of 10.8% in the price of electricity in the North. Almost 70% of the price of electricity is accounted for by generation costs. With the exception of some peat, all fuels are imported. A programme of investment in improvements in the electricity network is under way, at a cost of €2.8 billion, and will last until 2010. Does the Opposition want a Third World network for a First World economy?

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