Tommy Broughan (Dublin North East, Labour)

It is clear from the recent Deloitte & Touche report and from previous similar reports — I note Sustainable Energy Ireland will present its annual energy statistics next week — that the Irish electricity market is small and does not have a high degree of interconnectivity. These two factors can in themselves greatly contribute to high prices and medium to long-term energy insecurity unless they are properly modulated by a responsible and farsighted Government.

As I noted, the key statistics regarding both electricity markets from Deloitte & Touche are highly illuminating. Currently in the Republic, peak demand averages approximately 4,500 MW and current generation capacity is 6,067 MW, of which the ESB accounts for 77%. The average annual demand growth for the past three years has been 4.6%. In Northern Ireland, current generation capacity is 2,396 MW, including 450 megawatts from the Moyle interconnector. Peak demand is approximately 1,660 MW. In the past six years, average demand growth has been 1.6%.

These figures simply indicate that even when taken together, the two markets are not much bigger than the electricity market of Kent in England and may be somewhat smaller than that of Manchester. The nature of electricity production and distribution means that when possible, smaller markets should be consolidated in order to establish a wider mutually beneficial energy market. The development of the all-island market should play a key role in ensuring energy security and sustainability in both parts of Ireland, as the single electricity market framework will increase the efficiency of electricity provision across both markets.

Furthermore, a properly managed single market should greatly decrease the risk of power shortages and blackouts. The beginnings of such advantages pertaining to the all-island market can be seen in the recent deal through the Commission for Energy Regulation to reserve 300 MW on the North-South interconnector. Importantly however, the development of the SEM should also address the perceived and actual dominance of the ESB in the electricity sector.

The media seem to be obsessed with the ESB in this regard. There never seem to be investigative or interesting columns emanating from our colleagues in media outlets such as The Sunday Business Post regarding Viridian or Northern Ireland Electricity and the extent to which they have been responsible, since the botched privatisation of 1991, for maintaining extremely high energy prices and for preventing domestic competition in Northern Ireland. As for the South, just before Question Time I asked what is in this for us. I refer to consumers, householders and business.

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