Dáil debates

Wednesday, 1 October 2008

8:00 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)

I thank my colleagues on all sides of the House for their contributions to this debate. I sometimes wonder whether Private Members' motions have any effect on Government policy and earning some dividend or change for people outside this House. If ever there was a motion that I hope will have some impact on the Government's attitude towards an issue, this is such an issue. Every Member of the House will agree that one issue raised by all constituents is the cost of electricity and the increasing cost of simply living in Ireland.

I want to offer some suggestions to the Ministers who are present — I am glad to see there are some present for the conclusion of this debate. I do not simply wish to give out about Government performance.

Actions can be taken by means of legislation and regulation to improve the energy market in Ireland and reduce energy prices. I ask the Minister to consider legislating to allow the regulator to set a maximum price for energy rather than setting a set price, as is the case each year. The ESB could then be permitted to generate power at below the price ceiling if this is possible. It could benefit from increased market share as a result of more competitive pricing. I can understand why there has been a set price for the past ten years because we have been trying to introduce competition into the market and attract new entrants. Such new entrants could not survive under normal competitive conditions whereby the ESB would simply offer to generate at a lower price. However, the situation has changed in that regard.

I would encourage the Government to fast-forward the transfer of ESB assets in the electricity grid to EirGrid, in an effort to send a strong signal to the marketplace that we support competition and a fair market place for all generators.

We should reform the public consultation process around the decision-making when the regulator decides to increase prices or, if ever, to reduce prices. It is hugely stacked in favour of generators or the ESB who makes their case. In the United States or Canada the practice is to have a forum of discussion that includes organisations such as the Combat Poverty Agency and others who understand the worries and concerns of consumers and households. The regulator has a legal responsibility to protect consumers as well as offering fair prices to generators.

The Minister needs to look at the regulatory regime for gas pricing as at some stage in the future gas will be coming ashore from the Corrib field. Under the existing regulatory structure for gas, this will result in increased gas prices in Ireland because we will be importing a much lower volume of gas which will therefore be more expensive and the price of gas to consumers will be increased.

We have missed the boat this year with regard to the famous windfall profits being made by energy generators. The ESB has made what I would describe as a generous donation in a rebate of €300 million. We must be honest with people. Every household is already paying a carbon tax of 10% on top of their energy bills. That money must be taken back, put into a ring-fenced energy fund and spent responsibly looking after poor people and low-income households who need support from the Government.

There are some issues regarding smart metering but I will raise them separately with the Minister. In terms of energy rating, I welcome the substantial work being done on housing insulation. However, I encourage the Minister for the Environment, Heritage and Local Government to examine energy rating issues regarding windows, through which large amounts of heat and energy are lost. Our rating system for windows is not satisfactory and we should examine the UK's system which is a far more exact measurement of the overall window structure rather than just the glass pane.

The Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, has described fuel poverty as the most crucial social issue facing society, an issue of a crisis of affordability for homes across the country. Those are strong words from a senior Minister. Yet all this motion seeks in terms of a commitment — everything else relates to suggestions — is that the Government would introduce a comprehensive policy which puts fuel poverty at its heart rather than a description of other energy policies, as heard this evening, regarding conservation, climate change, greenhouse gas emissions, etc., where benefits for families struggling with energy costs are just a by-product of such policies. That is not good enough for an issue as important this one.

We want a specific, targeted policy with a set timeframe and budget, financed by windfall energy taxes. Even the Commission for Energy Regulation at yesterday's meeting of the Joint Committee on Communication, Energy and Natural Resources called for a carbon tax on energy generators. The commissioner acknowledged it is ridiculous that 50% of energy produced in Ireland is coming from private energy generators who get windfall profits on the back of consumers and households struggling to meet their payments. That is not just.

If the Minister brings forward a real and measurable strategy to tackle fuel poverty, he will get constructive assistance and criticism from all Opposition parties. I commend the motion to the House.

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