Noel Dempsey (Meath, Fianna Fail)

The timetable for the legislation is until the end of 2008. The transfer will take place by then and the legislation will fit within that timetable. The tripartite agreement was made in 2000 for a five year framework. It was designed to protect the ESB from competition as we opened and liberalised the markets. The Government was committed to a strong ESB, as it is now.

Regarding the risk-related rate of return, a North-South grid study will take into account the work necessary, including microgeneration, to increase the amount of renewables and reach our ambitious targets in that area. When completed, we will have a complete picture of what is needed for the transmission system to cater for renewables until 2020 and 2030 on an all-island basis. The risk-related rate of return means that if money is spent, repayments and interest will be included in the price. The regulator can give 3.2%-6.8% return on the distribution assets. The risk-related rate of return would be at the lower end of that because giving a profit adds to the cost. The cost of renewables and work needed on the grid would be returned in the risk related rate of return.

This and previous Governments are committed to the ESB. As part of the tripartite agreement Synergen was set up, along with new stations in Lanesborough and Shannonbridge. Investment in Coolkeeragh was encouraged and the repowering of Moneypoint and Aghada. Major investment was made in Spain, the investment was recouped and the ESB owns half of the power station. All of this was approved by Government and the one deal that was not approved was one in which the ESB did not follow the correct procedures. Instead, it presented a fait accompli to the Government.

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