John Browne (Wexford, Fianna Fail)

These amendments suggest that specific provision be made for representatives from industry, consumer groups and trade unions to be included on the SEM committee and consulted in the appointment of members of the SEM committee under section 1(a) of Schedule 1 and the independent members under section 2.

Having reflected on the points raised by the Deputies I would like to offer the following clarification. The principal objective of the Minister, the Commission for Energy Regulation and the SEM committee in the exercise of their functions is to protect the interests of the consumers of electricity both North and South. The SEM committee, which will be the independent decision making arbiter of the new market, will take decisions on all matters relating to the wholesale electricity market. The Commission for Energy Regulation is not currently structured to reflect specific consumer representation and as a sub-committee of the commission it is necessary that the SEM committee mirror that parent structure.

One of the key requirements of the role of the independent member to the SEM committee is the ability to act independently of interests in either jurisdiction. I am of the view that the independent member to the SEM committee should be appointed on the basis of objective assessment of the independence of interests in each jurisdiction, their experience and expertise in regulation and energy as appropriate and their ability to fulfil a complex role. The number of candidates who will be able to fulfil this role is likely to be limited but there is nothing to prevent members of the mentioned groups being appointed to the role should they fulfil such objectives.

The introduction of an approval system involving consumer groups and-or trade union groups, both North and South, while also providing for the foregoing qualifications, is likely to be unwieldy to say the least. It would impose a major administration difficulty in the operation of the SEM committee and the likelihood of agreement on the appointment of the independent member would be remote.

I am also of the view that specific legislation provision for consultation with the various interest groups mentioned is neither necessary nor appropriate. There is nothing to prevent the Minister consulting with such groups as he deems necessary as part of the appointment process.

Consultation with the regulatory authorities regarding appointment by the Minister to the SEM committee applies due to their technical expertise in the sector and is key to ensuring the proper functioning of the SEM committee. However, the Bill is the first legislative step towards the establishment of an all-island energy market where such consumer representations may feature and will be considered in the context of future legislation.

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