Noel Dempsey (Meath, Fianna Fail)

A number of points have been raised that are similar to those raised in the first round of contributions on this aspect of the Bill and I will try to deal with them again.

EirGrid is vested, established and will own the east-west interconnector due to be completed not later than 2012. It is important that we made this start in the area. Everyone in the House accepts EirGrid will act independently, though I accept the Deputies' point that without ownership of the transmission system there is a danger and a public perception that it will not work independently.

I was slightly lost in the argument made by Deputy Broughan before lunch relating to competition and the ESB. Unions and management at the ESB see the ownership of the transmission wires as a kind of Holy Grail. EirGrid currently controls the transmission system. Whether the thinking behind that is ideological or strategic, in the hope that in the future it will be privatised, I do not know. The transmission system does not need to be owned by the ESB.

In answer to Deputy Ryan's question, little profit is made from the transmission system, as opposed to the distribution system, which is lucrative. It is not accurate to say high energy costs arise largely from regulated returns from these two systems, though I accept they are a factor. Deloitte & Touche shows that 70% of these costs arise from external factors, mainly the prices paid for fossil fuels and so on. Approximately 30% arises from domestic factors, one of which is the operation and maintenance of the systems.

I think Deputy Broughan was accusing some in my party and the Progressive Democrats of trying to sell off the network, but that is not on the cards.

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