Tommy Broughan (Dublin North East, Labour)

I refer to a press release I received from the Minister, Deputy Noel Dempsey who is in Hanoi where he met Dr. Do Trung Ta. The Vietnamese Government is spending $4 billion on an ICT system. This is approximately €3.7 billion more than what the Irish Government is spending over the next eight or ten years. It is hoped the Minister will come back from Hanoi a changed man when we will be tabling some amendments to the current Bill. If I knew he was going to Hanoi I might have been able to send on a message from my own Vietnamese constituents who are so hard working and diligent.

I welcome the introduction of the single electricity market Bill as a truly historic step linking the two very small and isolated electricity markets on this island. The Bill marks a significant development in energy legislation and it has profound implications for the long-term energy system. I have long been an advocate of practical patriotism, of ensuring that concrete measures are in place to contribute to the increased co-operation and harmonisation on both parts of the island for the economic benefit of all the people of the island.

I have some general concerns at the outset about the mechanisms that have been used on the British side to pass the legislation. It must go through an Order in Council to give effect to the legislation in Northern Ireland. There is a hiatus in the existence of the Northern Ireland Assembly but it is to be hoped that the Assembly Members and the democratic process in Northern Ireland is not being excluded from this important debate. People in the North are very aware of this debate. I heard Ian Paisley junior talking about the energy supply board. He had the title slightly wrong but it is clear he knows that the Electricity Supply Board will henceforth be playing a significant role in the electricity market in both parts of this island. It is to be hoped that the use of this Order in Council does mean an attempt to bypass democratically elected Members of both Dáil Éireann and the Northern Ireland Assembly in favour of control by regulators or technocrats. This matter has formed the basis of many of the amendments tabled by Deputy Durkan and me during the past year.

This Bill and its proposals have been under discussion since 1999 when the Minister's predecessor, Mary O'Rourke, set off on our side of the Border on the long path that has finally led to this historic day. The Bill deals with the technical issues of establishing the single electricity wholesale market, the provision for information between the various parties to the single electricity market in section 8 and the provision of a licensing framework for the establishment of the single electricity market operator in sections 11 to 13, inclusive. The operation of those new sections will fundamentally alter the electricity market in both parts of Ireland.

A number of issues are referred to in the Deloitte & Touche report and in the report entitled, The Development Framework for the All-Island Market, which was published in November 2004 by the Department of Communications, Marine and Natural Resources in conjunction with DETI, the Northern Ireland Department of Enterprise, Trade and Investment. These include the need for a single transmission system operator, the harmonisation of tariffs, common grid codes, generation adequacy reports, common generation adequacy reports, metering policy — which the House discussed last week — the harmonisation of carbon trading policies and renewable and energy efficiency policies and a host of other issues which are not dealt with in this modest Bill. The ongoing delays and haphazard manner which has characterised the tabling of the single electricity market Bill, indicate the overall apathy with which the Fianna Fáil-Progressive Democrats coalition has dealt with energy matters.

IBEC used a phrase of mine when referring to energy. It stated that the current, outgoing Government is sleepwalking on energy policy. It is to be hoped it will sleep walk its way out of office and Deputies on this side of the House will be given a chance in four or five months time to shape energy policy from the Government benches. I welcome the Bill but it is regrettable that the date for the single electricity market to go live has been postponed for nearly six months, from the original target date of July 2007 until November 2007.

The recent Deloitte & Touche report on the electricity sector in Ireland criticised the barriers in place for the achievement of the 2010 renewables targets and argued that "if there is any delay in the delivery of the single electricity market target opening date of July 2007, overall industry and investor confidence may be negatively impacted". This is stated on page 42 of the Deloitte & Touche report. The Government has failed to meet the target date and it has been lethargic on a whole range of energy matters.

I refer to the Minister's comprehensive opening contribution in which he refers to the cost-benefit analysis. I compliment the departmental officials who were very helpful to the Opposition regarding the development of the legislation. I note that the cost-benefit analysis promises an estimated net social benefit of €147 million, net present value, discounted over a ten year period. Over a 20 year period the net social benefit is estimated at €428 million. The split is supposed to be 80:20 between customers and generators. The Minister, his officials and the regulators have a key responsibility to ensure this happens. This House should be bringing in a much bigger, all-island electricity market which would mean lower prices to consumers. Both Members and the Ceann Comhairle have received a torrent of e-mails from small and medium-sized businesses which do not know how they will be able to meet that 20% tariff rise if it happens on 1 January as they are also suffering from the rise in gas prices.

This Bill should be regarded as a means of bringing about lower prices and if it does not, then the work of the House is misplaced.

The Minister should inform the House the reason for another six months delay in the introduction of the single electricity market. Reports in the media suggested there were problems with the computer system and the detailed market modelling could not be done. The Sunday Business Post reported that there were difficulties in obtaining work permits for the necessary specialist staff. I ask the Minister to inform the House whether this has happened elsewhere and whether other electricity markets have been linked together and integrated. There are not too many examples of where this has been done. In that regard I know it is a difficult and historic path on which we are embarking. We were informed there were technical problems but the Minister has never briefed the Opposition on the reasons for the six month delay nor has he addressed claims that it was because of delays by the Fianna Fáil-Progressive Democrats Government in bringing forward the necessary legislation which is finally before the House today. He will need to indicate whether any other legislation is planned and whether this is just the first of a series of Bills. This Bill is an amendment to the 1999 Act which set up CER and which must be read in conjunction with the Energy (Miscellaneous Provisions) Bill. I ask the Minister to address the question of the initial delay and the further delay to November 2007. Our officials have endeavoured to quantify in cost-benefit terms the exact advantages to this country and to the people of all the island of the implementation of the single electricity market. The two markets are so small, it is understandable there have been many problems.

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