Eamon Ryan (Dublin South, Green Party)

That is a matter for the other generators. Deputy Coveney's motion calls for a €1.5 billion rebate to apply over the five year period, which amounts to €300 million per year. I agree with the Deputy that it is still important for us to put the cost of carbon through the market, even though that is a difficult decision. That will change after 2012, as the Deputy pointed out, when auctions will apply and the companies will have to bear the cost. In the interim, the CER and the ESB have taken a very responsible position in at least mitigating that rise, where possible, to the extent of bringing about an 8% lower rise in electricity prices than would otherwise have applied. I commend the CER and the ESB for their actions in that regard.

The CER carries out extensive consultations on all its tariff decisions. The tariffs are designed to be fully reflective of the actual cost of supplying electricity and gas in the Irish market. Cost reflective tariffs eliminate cross subsidisation, facilitate competition and ensure that vital investment in critical energy infrastructure can be delivered to ensure security of supply and underpin economic growth. The CER is completely independent in the performance of its statutory functions.

In terms of the wider picture, this must be examined in the context of price increases in the European Union during the same period, which have been up to 38% in certain countries. In the United Kingdom, suppliers have increased end-user electricity tariffs by over 26% on average and gas tariffs by over 40% on average in 2008 and further price increases are probable over the winter months. This clearly indicates that this is a crisis. Northern Ireland has also seen similar price increases, with a 14% increase in electricity tariffs announced on 1 July, followed by a further 33% increase in September. Gas prices in Northern Ireland rose by 28% in May and a further 19.2% increase was announced in September.

I commend one detail in the motion tabled by Fine Gael, namely the recognition that tackling this problem requires institutional investment so we have a diversity of supplies. We will need to switch to renewable generation if we are to avoid the volatile fossil fuel price increases that are the likely scenario in any energy future.

I again commend the ESB on the decision it made earlier this year in terms of setting its course in a €22 billion strategic plan aimed at making it a zero emissions low-fossil fuel company which will protect the Irish public in the long run from fossil fuel price increases. I hope we all can commend and work with our transmission company, EirGrid, to deliver some of the infrastructure — east-west interconnectors, North-South interconnectors and other interconnection and grid developments — which will be the crucial mechanism by which we reduce our reliance on those fossil fuels——

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