Noel Dempsey (Meath, Fianna Fail)

The Deputy also asked about the reduced rate of return in respect of the distribution lines, or the lines which extend into our houses and businesses, etc. The Government has taken the view that this sector is a natural monopoly — there is no competition in this area — therefore, there is no need to treat it in the normal commercial way. We have decided that the charges we impose on the distribution lines should be risk-related. Enough income should accrue from the distribution lines to meet capital costs, pay for maintenance and fund future investment, with a slight margin. When the risk-related rate of return is applied, it will have a direct effect on the cost of electricity to consumers. That is why the policy is being pursued. We might have taken another view of the matter if there was competition in the distribution lines. The Deputy also asked about privatisation and whether there was a plan for this. There is no plan for privatisation.

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