Dáil debates

Wednesday, 15 November 2006

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

 

4:00 pm

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)

I am not accepting the amendments because providing that the Minister sanction a decision of the CER and granting the authorisations being spoken about would undermine the statutory independence of the CER. The existing provisions for CER to grant an authorisation to construct a power station, consent to construct a natural gas pipeline or license an energy undertaking do not require any ministerial consent. Moving in this direction with this Bill is not an option, certainly not one I will exercise.

There is also the question of consistency with the provision for the Minister to give policy directions to CER, which we have just discussed. It is explicitly stated that the Minister may not issue a policy direction in respect of a person who has applied for or holds a licence, authorisation or consent. Therefore, sanctioning a decision of CER in granting an authorisation to construct an interconnector is not an appropriate role for the Minister in this.

The amendment on the issue of competitive tendering seeks to remove the option of the CER securing the construction of an interconnector by any means other than by competitive tender. Nothing is envisaged other than this process occurring through competitive tender, which is clearly the preferred option. It should not be the only means open to CER to secure the construction of an interconnector.

Circumstances could arise where the process would need to be done in a manner other than through that method. Therefore it is not proposed to amend the provision. In particular, where an interconnector is part of the Irish transmission system and owned by the ESB, it would fall on the ESB to procure or carry out the works to construct it.

Deputy Durkan has also tabled an amendment seeking to specify that any authorisation to construct an interconnector without prior competitive tender must be approved by Dáil motion. As I have indicated previously, there are legitimate reasons an interconnector may be developed by a means other than competitive tender. In any case, the Minister's consent is required before the final decision is taken. Therefore, I do not propose to accept that amendment either.

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